If the percentage change in quantity supplied is 10%, and the percentage change in price is 10%, then the supply for the good is
A. perfectly inelastic.
B. elastic.
C. inelastic.
D. unit elastic.
Answer: D
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Which of the following is the most likely reason for a coffee seller to change the price of coffee from P1 to P2?
a. The demand for decaf coffee increased.
b. The coffee crop reached the expected yield.
c. Ideal weather created a high yield of coffee.
d. Insects reduced the coffee yield.
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.
Mary increases her consumption of Good X after the price of Good Y decreased. For Mary
A) Good X and Good Y are substitutes. B) Good X and Good Y are complements. C) Good X is an inferior good. D) Good Y is an inferior good.
Refer to the graph shown. If the price of this product fell from $10 to $8, producer surplus would fall from:
A. 250 to 180. B. 1,000 to 540. C. 750 to 270. D. 750 to 540.