A candle manufacturer produces 4,000 units when the market price is $11 per unit and produces 6,000 units when the market price is $13 per unit. Using the midpoint method, for this range of prices, the price elasticity of supply is about
a. 6.
b. 2.4.
c. 0.4.
d. 0.67.
b
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An example of a good that is not rival in consumption is:
A. a sports car. B. a paper clip. C. bottled water. D. electricity.
Demand-pull inflation occurs when the factor contributing most to rising prices is decreased demand for goods and services
Indicate whether the statement is true or false
Senator Jackson argues that replacing the federal income tax with a national sales tax would increase the level of output. Senator Feldman objects that this policy would benefit the rich at the expense of the poor
a. Both senators' arguments are primarily about equality. b. Both senators' arguments are primarily about efficiency. c. Senator Jackson's argument is primarily about equality, while Senator Feldman's argument is primarily about efficiency. d. Senator Jackson's argument is primarily about efficiency, while Senator Feldman's argument is primarily about equality.
Consider the above figure. The curve shown is sometimes referred to as
A. the Phillips curve. B. the Laffer curve. C. the Keynesian curve. D. the Ricardian curve.