If a 25% change in price results in a 40% change in quantity supplied, then the price elasticity of supply is about
a. 0.63, and supply is elastic.
b. 0.63, and supply is inelastic.
c. 1.60, and supply is elastic.
d. 1.60, and supply is inelastic.
c
You might also like to view...
If the firm in the given graph were to maximize profits, it would:
These are the cost and revenue curves associated with a firm.
A. produce Q1 and charge P3.
B. cause deadweight loss.
C. earn zero economic profits.
D. All of these statements are true.
An example of an external force affecting the business cycle is
a. an inventory accumulation. b. the multiplier effect. c. a change in business attitudes toward investment. d. a change in the discount rate by the Fed.
During which period were government budget deficits quite large, but there was no corresponding surge of private saving?
a. in the mid-1970s b. in the mid-1980s c. in the mid-1990s d. in the mid-2000s
Imagine that the stock market crashes, interest rates plummet, and inflation soars. Considering this, what would most likely be the attitude of banks about giving out loans?
a. somewhat open b. very open c. somewhat hesitant d. very hesitant