The following data relate to the supply schedule of a product.PriceQuantity Supplied$51001020015250203002535030500Using the regular percentage change formula, what is the price elasticity of supply when price increases from $15 to $20?
A. 0.2
B. 1
C. 0.6
D. 0.5
Answer: C
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Suppose Ernie gives up his job as financial advisor for P.E.T.S., at which he earned $30,000 per year, to open up a store selling spot remover to Dalmatians. He invested $10,000 in the store, which had been in savings earning 5 percent interest. This year's revenues in the new business were $50,000 . and explicit costs were $10,000 . Calculate Ernie's accounting profit
a. $10,000 b. $50,000 c. $20,000 d. $40,000 e. $9,500
According to the Keynesian view, if policy makers thought the economy was about to fall into a recession, which of the following would be most appropriate?
a. a change in government spending and taxation that will lead to a budget surplus b. a planned increase in the budget deficit c. reducing government expenditures d. balancing the budget
In the circular flow diagram model:
A. households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses. B. businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households. C. households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses. D. Both (a) and (b) are correct.
The largest single source of revenue for the federal government is
A. Personal income taxes. B. Excise taxes. C. Social Security payroll taxes. D. Corporate income taxes.