The price elasticity of supply of a good compares:
a. the percentage change in the price of the good with the percentage change in its quantity supplied.
b. the percentage change in the quantity supplied of the good with the percentage change in its price.
c. the percentage change in the quantity demanded of the good with the percentage change in its supply.
d. the percentage change in the quantity supplied of the good with the percentage change in its demand.
b
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Based on the following data for the country of Tiny Town, the employment-to-population ratio equals ________ multiplied by 100. Population = 200 Working age population = 100 Labor Force = 90 Number of employed persons = 75
A) 90/100. B) 75/200 C) 90/200. D) 75/100.
According to the saving and investment equation, if net foreign investment falls by $35 million,
A) domestic investment will fall by $35 million. B) national savings will rise by $35 million. C) national saving in excess of domestic investment will rise by $35 million. D) national saving in excess of domestic investment will decrease by $35 million.
Given that diesel cars get much better gas mileage than the typical car, an increase in the price of gasoline would be expected to:
A. decrease the equilibrium price and quantity of diesel cars. B. increase the equilibrium price and quantity of diesel cars. C. decrease the equilibrium price and increase the equilibrium quantity of diesel cars. D. increase the equilibrium price and decrease the equilibrium quantity of diesel cars.
Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900.For Sam, cutting his price to $2.90 per gallon is a:
A. revenue-maximizing strategy. B. profit-maximizing strategy. C. dominant strategy. D. dominated strategy.