If the percentage increase in the quantity supplied equals the percentage increase in the price, the supply:
A. is perfectly elastic.
B. has unit elasticity.
C. is elastic.
D. is inelastic.
Answer: B
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People who benefit from a rent ceiling include
A) all landlords. B) taxpayers. C) tenants who have a rent-controlled apartment. D) potential tenants, that is, people looking for apartments. E) all landlords and some tenants.
If the price of hair styling increases, then
A) hair styling salons hire fewer workers but makes more profit. B) hair stylists demand an increase in wages and the salons hire fewer workers. C) the value of marginal product of each hair stylist increases and the demand curve for hair stylists shifts leftward. D) the value of marginal product of each hair stylist increases and the demand curve for hair stylists shifts rightward.
According to the graph shown, the monopolistically competitive firm will produce:
These are the cost and revenue curves associated with a monopolistically competitive firm.
A. where MR = MC and will charge according to ATC.
B. where MR = MC and will charge according to D.
C. where D = MC and will charge according to MR.
D. where D = MC and will charge according to ATC.
Lower profit expectations cause firms to ______.
a. cut capital spending b. boost capital spending c. hire more workers d. increase wages for existing workers