Complete price stability would be the result of
A) inflation. B) an inflation rate of zero.
C) deflation. D) hyperinflation.
B
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If the price elasticity of supply of a good is elastic and the good price increases, then the increase in the good's supply should be
A) greater than the increase in price. B) less than the increase in price. C) the same as the increase in price. D) Cannot be determined from this information
After an increase in demand in a constant-cost industry, firms will find themselves with higher average cost curves
a. True b. False
Suppose the production function is given by Q = 3K + 4L. What is the average product of capital when 5 units of capital and 10 units of labor are employed?
A. 11 B. 3 C. 4 D. 45
A firm calculated that the income elasticity of demand for its signature product was equal to (+)0.87. Based on this information, we can say that the firm's product is:
a. A substitute good b. A complementary good c. An inferior good d. A normal good