If the quantity of a good supplied is highly sensitive to the price of the good, economists say the supply of the good is relatively
a. inelastic.
b. elastic.
c. robust.
d. inverse.
B
You might also like to view...
Refer to Figure 13.1. Assume the voting method used to select a location for the recreation center is the instant runoff method. With this method, each voter ranks the towns in order of preference, from first to fourth
The town with the fewest first-place votes will be eliminated, and anyone who voted for that town will have their first-place vote transferred to the town they liked next best. This process continues until only one town is left, and that town will be declared the winner. With this method, the first town to be eliminated is A) Desert Sands. B) Glacier Cove. C) Mountain View. D) Oceanside.
Automatic stabilizers "lean against the prevailing wind" of the business cycle because:
A. wages are controlled by the minimum wage law. B. federal expenditures and tax revenues change as the level of real GDP changes. C. the spending and tax multipliers are constant. D. they include the power of special interests.
The way we know what commodities are relatively scarce or abundant is through
A) transaction costs. B) prices. C) price ceilings. D) price floors.
When the price of a product is increased 15 percent, the quantity demanded decreases 10 percent. We can therefore conclude that the demand for this product is:
A. Elastic B. Inelastic C. Cross-elastic D. Unitary elastic