A firm facing a horizontal demand curvea. cannot affect the price it receives for its output.b. always produces at an output at which P = MR.c. faces perfectly elastic demand for its product.d. All of the above are correct.

During Ramadan season, stores give a lot of discounts and enjoy huge sales and profits. This is because their products have_____. a. Inelastic demand b. Unitary elastic demand c. Elastic demand d. Perfectly Inelastic demand

Identify all those goods which has 1. Unitary elastic demand 2. Perfectly elastic demand 3. Perfectly inelastic demand

A2

If a firm increases the price of their product in the elastic portion of the demand curve, total revenues will 5 OA. increase. OB. decrease. OC. stay the same. OD. first increase and then decrease.

Give typing answer with explanation and conclusion

8. need help

If the price elasticity of supply is zero, the supply curve isa. upward sloping.b. horizontal.c. vertical.d. fairly flat at low quantities but steeper at largerquantities.

2. The price of U.S.-produced long grain rice fell by 40 percent from January 1999 to January 2000. In response to the price fall, growers of U.S. long grain rice planted 17 percent less on acreage in 2000. If the harvest also decreases by 17 percent. 2a. How would you describe the supply of U.S. long grain rice (Elastic, Inelastic, Unit Elastic)? 2b. Calculate the price elasticity of supply of U.S.-produced long grain rice? 2c. If the price of long grain rice remains the same, do you think the elasticity of supply will change over the coming years?

10. Price elasticity of supply in the short run and long run The following graph shows the long-run supply curve for pistachios. Place the orange line (square symbol) on the following graph to show the most likely short-run supply curve for pistachios. (Note: Place the points of the line either on Y and V or on Y and S.) PRICE (Dollars per pound) 48 40 8 0 0 Y 4 O S V Long-Run Supply 2 6 8 10 QUANTITY (Thousands of pounds of pistachios) 12 Short-Run Supply (?)