Suppose that last year the Tulane University men's basketball team, the Green Wave, won the NCAA tournament. As a result, attendance at Green Wave basketball games has increased dramatically. Explain the difference between the supply of seats for Green Wave games in the short-run and in the long-run. How would you describe the elasticity of supply of seats in the long-run?
What will be an ideal response?
In the short-run, the supply of seats in the arena is perfectly inelastic. There is no way to expand the arena during a basketball season or to play more games. In the long-run, however, if demand stays very high the school might decide to increase the number of seats in the arena. Thus supply elasticity is more elastic in the long-run than in the short-run.
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One economic advantage of a large share of exports in GDP is that countries
A) can reduce their budget deficits. B) can purchase the imports they need. C) can maintain lower rates of unemployment. D) will have greater equality in their incomes. E) develop more labor-intensive industry.
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Answer the following statement true (T) or false (F)
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A. 8 percent. B. 6 percent. C. 12 percent. D. 10 percent.