If a rise in the price of oranges from $7 to $9 a bushel increases the quantity of bushels supplied from 4,500 to 5,500 bushels, the
A) supply of oranges is elastic.
B) supply of oranges is inelastic.
C) demand for oranges is elastic.
D) demand for oranges is inelastic.
B
You might also like to view...
The principle of minimum differentiation reflects the
A) tendency for firms to produce at minimum marginal cost in order to compete with one another. B) tendency for political parties to make themselves identical to appeal to the median voter. C) concept of minimizing the difference between total benefit and total cost to produce efficiently. D) attempt to minimize the free-rider problem.
If a market is allowed to move freely to its equilibrium price and quantity, then an increase in supply will
a. increase consumer surplus. b. reduce consumer surplus. c. not affect consumer surplus. d. Any of the above are possible.
The following figure shows the demand and cost curves facing a firm with market power in the short run.
The firm will sell its output at a price of
A. $3.75. B. $5. C. $3. D. $2. E. $6.
One of the difficulties in implementing monetary policy is the time it takes:
A. to enact monetary policy once the Fed has decided action is needed. B. to pass new monetary policy once the Fed has decided action is needed. C. monetary policy to have an effect in the economy once enacted. D. to get approval from the Congress to implement the policy.