If the percentage change in the quantity supplied of a good is less than the percentage change in price of the good, the good is said to have a(n):
A) inelastic supply.
B) unit elastic supply.
C) elastic supply.
D) perfectly elastic supply.
A
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Which statement about the Life Cycle Hypothesis is NOT true?
A. It describes the choices of consumers who live for a long time. B. It separates consumers' earnings into two stages. C. It assumes that people prefer instability. D. It assumes that people prefer a higher standard of living to a lower standard of living.
The reason why firms in perfect competition do not advertise is because
a. their demand curves are all downward sloping and if they sell more it would have to be at a lower price b. they differentiate themselves, as with milk c. they are typically small in size and cannot produce for a wider market d. there is no entry into the industry e. there is no product differentiation among the goods produced
Nike and Reebok (athletic shoe companies) are considering whether to advertise during the Super Bowl. Devise a simple prisoners' dilemma game to demonstrate the strategic considerations that are relevant to this decision. Does the repeated game scenario
differ from a single period game? Is it possible that a repeated game (without collusive agreements) could lead to an outcome that is better than a single-period game? Explain the circumstances in which this may be true.
If average product is increasing, then marginal product
A. cannot be decreasing. B. must be increasing. C. must be greater than average product. D. must be less than average product. E. both a and c