If the percentage increase in the quantity supplied is smaller than the percentage increase in the price, the supply:
A. is elastic.
B. is inelastic.
C. is perfectly elastic.
D. is unit elastic.
Answer: B
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Assume that coffee and tea are substitutes for each other. If weather conditions cause a substantial portion of the available coffee crop to be destroyed, then most probably: a. the price of tea will decrease
b. the price of coffee will decrease. c. the price of tea will increase d. none of the above
Which of the following is most likely an example of the division of labor?
a. It is easier to be a wheat farmer in North Dakota than in Florida. b. If you live in or near a big city, it is easier to attract enough customers to operate a successful dry cleaning business or movie theater than if you live in a sparsely populated rural area. c. A restaurant divides up the task of serving meals into a range of jobs like top chef, sous chefs, less-skilled kitchen help, and servers to wait on the tables. d. Only those with medical degrees qualify to become doctors.
The OPEC oil cartel has difficulty maintaining high prices in the long run because the supply of oil is more inelastic in the long run than in the short run
a. True b. False Indicate whether the statement is true or false
Your company makes copper pipes. Over the years, you have collected a large inventory of raw copper. The production process involves melting the copper and shaping it into pipes. You also have a large stockpile of pennies. Suppose the price of copper rises so much that the copper in the penny becomes worth more than one cent. Should you melt down your pennies?
What will be an ideal response?