Refer to the diagram and assume that price decreases from $10 to $2. The coefficient of the price elasticity of supply (midpoint formula) relating to this price change is about:
A. 4 and supply is elastic.
B. 1 and supply is unit elastic.
C. .5 and supply is inelastic.
D. .25 and supply is inelastic.
D. .25 and supply is inelastic.
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The Keynesian short-run aggregate supply curve is demonstrated graphically as a
A) vertical line. B) horizontal line. C) upward sloping curve. D) downward sloping curve.
Suppose you observe that the sun sets every evening after the six o'clock business report. If you conclude that the six o'clock business report makes the sun set, you are guilty of the fallacy of:
A) division. B) composition. C) false cause. D) science.
Other things constant, which of the following would tend to decrease the demand for Disney World vacations?
A) A rise in the price of Hawaiian vacations (a substitute for Disney World) B) A rise in income, if Disney World vacationing is a inferior good C) A fall in the price of air travel (a complementary good) D) New information that Disney World will raise its prices after this summer E) All of the above.
Transfer payments are an injection into the circular flow of income and expenditure model
a. True b. False Indicate whether the statement is true or false