The following data relate to the supply schedule of a product.PriceQuantity Supplied$51001020015250203002535030500The price elasticity of supply (based on the midpoint formula) when price increases from $15 to $20 is
A. perfectly elastic.
B. unit elastic.
C. inelastic.
D. elastic.
Answer: C
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In the short-run, total fixed costs always exceed total variable costs
a. True b. False Indicate whether the statement is true or false
Suppose that an increase in oil prices causes the supply curve of gasoline to shift. Using a graph, illustrate the resulting changes in equilibrium price and quantity in both the short run and the long run.
What will be an ideal response?
In 2007, investment in France increased by 7 billion euros. Which of the following occurs?
I. an upward shift in the AE curve II. a leftward shift in the AD curve III. an increase in the price level and real GDP in the short run IV. an increase in the price level and no change in real GDP in the long run. a) I, II, III, & IV b) I & III only c) I, II, & IV only d) III & IV only
The income effect of a wage rate increase should lead to
A. a decrease in the quantity of labor supplied and a decrease in leisure. B. an increase in the quantity of labor supplied and an increase in leisure. C. an increase in the quantity of labor supplied and a decrease in leisure. D. a decrease in quantity of labor supplied and an increase in leisure.