Suppose that in a month the price of movie rentals increases from $2 to $2.20. At the same time, the quantity of movie rentals supplied increases from 100 to 110. The price elasticity of supply for movie rentals (calculated using the initial value formula) is:
A. 0.02.
B. 0.2.
C. 1.
D. 50.
Answer: C
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A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Consider the budget line in the above figure. If the consumer's income is $120, then the price of a book is
A) $10 per book. B) $12 per book. C) $6 per book. D) More information is needed to determine the price of a book.
A mortgage-backed security is a bundle of hundreds of mortgages which represents a claim on the monthly payments made on those mortgages
a. True b. False Indicate whether the statement is true or false
In the simple circular flow model of the economy, total expenditures on goods and services equal total household income
a. True b. False Indicate whether the statement is true or false