The price elasticity of supply is __________ elastic over time because ___________.
A. less; producers get accustomed to the price changes
B. less; the ideal number of firms have time to move into or out of the industry
C. more; producers have a longer time to adjust their production decisions
D. more; producers get accustomed to the price changes
C. more; producers have a longer time to adjust their production decisions
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By fixing the exchange rate, the central bank gives up its ability to
A) adjust taxes. B) increase government spending. C) influence the economy through fiscal policy. D) depreciate the domestic currency. E) influence the economy through monetary policy.
Will depletable resources such as oil, coal, and aluminum be exhausted if their prices are left to the market?
What will be an ideal response?
In the economic world of production, there are either price makers or price takers. By price takers we mean that
a. firms buy goods as well as sell them, and when they buy goods at whatever price, they play the role of "takers" b. firms take control of their own markets, charging whatever price they think the market will bear c. firms take the market price as given d. firms create the price and consumers either take it or leave it e. the market takes whatever price the firms charge, which is how the downward-sloping demand curve is created
Figure 9-1
?
In Figure 9-1, the economy is
A. experiencing an inflationary gap, shown by the horizontal distance EB. B. at full employment without inflation. C. experiencing a recessionary gap, shown by the horizontal distance EB. D. experiencing a recessionary gap, shown by the distance between EF.