Price elasticity of supply is defined as:
a. the slope of the supply curve.
b. the slope of the supply curve divided by the price.
c. the percentage change in price divided by the percentage change in quantity supplied.
d. the percentage change in quantity supplied divided by the percentage change in price.
d. the percentage change in quantity supplied divided by the percentage change in price.
Price elasticity of demand is defined as the percentage change in quantity supplied divided by the percentage change in price.
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In her book on the American work week, economist Juliet Schorr argues that Americans work too much. Her argument may be interpreted as concluding that this behavior
a. increases GDP but decreases well being. b. increases GDP and increases well-being. c. decreases GDP and decreases well being. d. decreases GDP but increases well being.
A product market is in equilibrium:
A. when there is no shortage of the product. B. when there is no surplus of the product. C. when consumers want to buy more of the product than producers offer for sale. D. where the demand and supply curves intersect.
Which of the following is included in the consumption component of GDP?
a. household purchases of appliances.
b. household purchases of medical care.
c. household purchases of food.
d. All of the above are included in the consumption component of GDP.
The equation of exchange states