Explain the relationship between elasticity of supply and time
What will be an ideal response?
Time is the key factor in determining whether the supply of a good will be elastic or inelastic.
You might also like to view...
Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If K and N each increase by 5 percent, and A is unchanged, by how much does Y increase?
A) 5% B) 10% C) 15% D) 20%
Refer to Figure g. Lily's benefit function (dashed) is more concave than Millie's (dotted) in Figure g. Millie:
A. is more risk averse than Lily.
B. is less risk averse than Lily.
C. has a larger risk premium than Lily.
D. has a lower certainty equivalent than Lily.
Bob deposits $100 in a bank account that pays an annual interest rate of 5 percent. A year later, Bob withdraws his $105 . If deflation was 5 percent during the year the money was deposited, then Bob's purchasing power has not changed
a. True b. False Indicate whether the statement is true or false
You use $50,000 of your own money to start a catering business. During the first year you earn a 5% return on that investment. If the current interest rate is 8%, you earn an economic profit of
A. -$4,000. B. -$2,500. C. -$1,500. D. $4,000.