The price elasticity of supply is 0.6. This means that
A) a $10 increase in price would increase quantity supplied by 60.
B) a 150 percent increase in price would increase quantity supplied by 90 percent.
C) a 50 percent increase in quantity will occur when price increases by 30 percent.
D) a 10 percent increase in quantity will occur when price increases by 6 percent.
B
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Gasoline prices increase by 50 percent and other things remain the same. As a result, there is
A) an increase in the demand for gasoline. B) a decrease in the demand for gasoline. C) no change in the quantity of gasoline demanded. D) a decrease in the quantity of gasoline demanded. E) More information is needed to determine if the demand for gasoline increases or decreases.
Which of the following has a production process that would be considered capital intensive?
A. A chorale B. Police detective work C. Auto manufacturing D. Serving food at a restaurant.
An individual's ________ surplus is the area ________ the ________ curve and above the ________ up to the quantity ________
A) consumer; under; demand; market price, the consumer buys. B) producer; under; supply; market price, the producer sells. C) consumer; above; supply; choke price, the consumer buys. D) producer; supply; under; choke price, the producer sells.
Monopolists differ from perfectly competitive firms
A. on neither the cost nor demand sides of the profit equation. B. on the demand side of the profit equation alone. C. on the cost side of the profit equation alone. D. on the cost and demand sides of the profit equation.