Long-run elasticity of supply is defined as:
a. percentage change in quantity demanded in the long run divided by percentage change in price.
b. percentage change in price divided by percentage change in quantity demanded in the long run.
c. percentage change in quantity supplied in the long run divided by percentage change in price.
d. percentage change in price divided by percentage change in quantity demanded in the long run.
c
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If a 5% cut in the price of a product causes the quantity demanded to rise by 10%, the demand is
A. unit elastic. B. inelastic. C. perfectly elastic. D. elastic.
A firm in a market economy must do all of the following to succeed except
A) organize the factors of production into a functioning, efficient unit. B) be organized as a corporation. C) produce the goods and services that consumers want at a lower cost than consumers themselves can produce. D) have access to sufficient funds.
Cost-plus pricing
a. is used only in oligopolistic market structures b. simplifies pricing policy by adding a markup to average total cost c. in actual practice leads to markups which are greater for more elastic demand curves d. is likely to increase profits more than the use of marginal analysis e. requires the firm to project the amount which will be sold and then "mark-up" the price based on average variable cost
The 1996 Welfare reform laws had the impact of
A. increasing work by welfare recipients. B. eliminating poverty. C. halving the number of people in poverty. D. doubling the poverty rate.