The Law of Supply suggests that the price-elasticity of supply is:
A. Positive
B. Negative
C. Always greater than 1
D. Always less than 1
A. Positive
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In the market for education, the ever-increasing faculty salaries and costs of using technology in learning are blamed for increases in tuition fees. On the basis of this argument, which of the following statements is true? a. Tuition fees increase due to an increase in demand for education
b. Tuition fees increase due to a decrease in demand for education. c. Tuition fees increase due to an increase in the supply of education facilities. d. Tuition fees increase due to an increase in the rate of interest on education loans.
If expected inflation is 12 percent and the publicly regulated electric utility company is legally limited to a 10 percent rate of return, then we should expect
A. increased investment by the utility. B. expansion of electric power generating capacity. C. future power shortages. D. excess investment by the electric utility.
According to the quantity theorists, the reason for inflation is _________.
Fill in the blank(s) with the appropriate word(s).
Suppose some firms exit an industry characterized by monopolistic competition. We would expect the demand curve of a firm already in the industry to
A. shift to the right. B. shift to the left. C. become less elastic. D. remain the same since entering firms serve other customers in the market.