Color television prices rise by 10 percent, and in response the quantity of those TVs supplied increases by 6 percent. The supply elasticity for color television sets in that price range is
A) 0.6.
B) 1.66.
C) 6.0.
D) -1.66.
A
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Assume a market that has an equilibrium price of $8. If the market price is set at $7, consumer surplus:
A. rises for some because of the decreased price. B. decreases for some because of fewer transactions taking place. C. Both of these statements are true. D. Neither of these statements is true.
The idea that less government regulation will lower the cost of production, increase profit, and raise the level of production so that, in the end, real GDP will increase is held by the
a. classical school b. Keynesian school c. rational expectations school d. school of supply-side economics e. neo-Keynesian school
One of the features of money is its store of value. However, most people do not hold their wealth as currency. Given that currency is the most liquid type of asset, why don't people hold all their wealth as currency?
Briefly explain how a technology spillover can help society while harming the originator of the technology, and describe the role of patents in the process.
What will be an ideal response?