If new firms enter a perfectly competitive industry, the market supply

A) does not change.
B) becomes more price elastic.
C) becomes more price inelastic.
D) increases.
E) decreases because each firm produces less than before the entry.


D

Economics

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The table above gives the demand schedule for peas. Between point C and point D, the price elasticity of demand is

A) elastic. B) unit elastic. C) 0.75. D) 3.00.

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Ad valorem taxes create tax wedges just like unit taxes.

A. True B. False C. Uncertain

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If you are out of work and are not looking for a job, then:

a. you are classified as "unemployed." b. You are part of the unemployment rate, but you are not part of the workforce. c. You are part of the unemployment rate, because you are part of the workforce. d. You are not classified as "unemployed," because you are no longer a part of the workforce. e. None of the above.

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The per-unit burden of the tax on buyers is

A. $10 B. $14 C. $6 D. $8

Economics