A determinant of the price elasticity of supply that is also a determinant of the price elasticity of demand is:
A. adjustment time.
B. availability of inputs.
C. whether the good is a luxury or a necessity.
D. flexibility of the production process.
Answer: A
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Use the following graph to answer the question below.
At a quantity of 290, marginal benefit equals ________ and marginal cost equals ________.
A. $0.50, $1.60 B. $1.60, $1.60 C. $1.00, $1.00 D. $1.60, $0.50
Refer to Table 2-8. Which of the following statements is true?
A) Betty has an absolute advantage in making both products. B) Betty has an absolute advantage in making statues and Wilma in making benches. C) Betty has an absolute advantage in making benches and Wilma in making statues. D) Wilma has an absolute advantage in making both products.
Deregulation, especially for the transportation and telecommunication industries, was the trend in the United States during the:
a. 1930s. b. 1950s. c. 1970s. d. 1980s.
The price of a good always changes when
A. there is an increase in demand and an increase in supply. B. either a shortage or a surplus occurs. C. there is a decrease in demand and a decrease in supply. D. quantity demanded and quantity supplied are constant.