If the supply curve for orange juice is estimated to be Q = 40 + 2p, then
A) supply is price elastic at all prices.
B) supply is price inelastic at all prices.
C) supply is elastic only at prices below 20.
D) No general statements about price elasticity of supply can be made.
B
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Answer the following statement(s) true (T) or false (F)
1. If the Open Range Field is currently a common property and the government decides to charge an entrance fee, this would result in an optimal level of activity in the Open Range Field. 2. Crowding at a common property site both reduces the benefits of visitors and increases the costs of being a visitor. 3. When people have identical tastes, nobody has any incentive to maintain or improve a property that is commonly owned. 4. When people have identical tastes, the rents created by a common property are totally dissipated. 5. When people have identical tastes, social gain can be created from a common property by imposing a Pigovian tax on entrants.
If the cross elasticity of demand between coffee and tea is positive, an increase in the price of tea will shift the demand curve for
A) tea rightward. B) tea leftward. C) coffee rightward. D) coffee leftward.
The amount of pizzas that consumers want to buy per week is reflected in the equation P = 15 - .02Q d , where Q d is the amount of pizzas purchased per week and P is the price of pizzas. On the basis of this information we can say that:
A. if pizzas were free, people would consume 800 per week. B. more pizzas will be purchased at a high price than at a low price. C. if the price of pizzas is $6, then 150 will be purchased. D. 50 fewer pizzas will be purchased per week for every $1 increase in price.
A stock bubble is against insider trading laws and if you participate in one you can be arrested.
Answer the following statement true (T) or false (F)