When production of a good can be expanded without significantly increasing the overall demand for its inputs: O a.supply for this good will tend to be more inelastic. O b.supply for this good will tend to be more elastic. O c. price for the good will be constant. O d. the elasticity of supply of the product will equal the elasticity of supply of the inputs.

Suppose the cross elasticity of demand for two goods, X and Y, is positive. If the price of Y falls, then quantity demanded will.. O a. Rise for both goods. O b. Rise for X and fall for Y. O c. Remain the same for both goods. O d. Fall for X and rise for Y. O e. Fall for both goods.

Question 19 If the price elasticity of supply is 0.1, which of the following is correct when price increases by 5 percent, Qs will decrease by 0.1 percent when price increases by 5 percent, Qs will increase by 0.5 percent O when income increases by 10 percent, Qs will increase by 1 percent Owhen price decreases by 8 percent, Qs will increase by 6.4 percent « Previous No new data te

If the supply of and demand for a product increase at the same time, then equilibrium O quantity and equilibrium price must both decline. O quantity must decline, but equilibrium price may either rise, fall, or remain unchanged. O price must fall, but equilibrium quantity may either rise, fall, or remain unchanged. O quantity must increase, but equilibrium price may either rise, fall, or remain unchanged.

1. Optimal choice of capital Eleanor makes sweaters in her home. Starting with just some knitting needles and yarn, she was able to knit 60 sweaters per year. Now some local stores have expressed interest in her designs and offered to buy her sweaters for $10 each. This makes it worthwhile for her to invest in some capital; in particular, she could produce many more sweaters if she invested in one or more looms, as shown in the following table. Assume that Eleanor's sweater business is a perfectly competitive firm. Complete the following table by calculating the marginal physical product (MPP) of each loom and the marginal revenue product (MRP) of each loom. Quantity of Input (Looms) Output (Sweaters per year) MPP of Each Loom (Sweaters) MRP of Each Loom (Dollars) 0 1 2 3 4 5 60 110 150 184 213 238 50 40 34 29 25 If the rental price of a loom is $270 per year, Eleanor should use 500 400 340 290 250 Suppose the demand for sweaters is very elastic, while the demand for cigarettes is very…

A $1-per-gallon tax on the sale of gasoline will raise the price by $1 per gallon if Select one: a. the supply is perfectly inelastic. O b. the demand is unit elastic. the supply is perfectly elastic. O d. the demand is perfectly elastic.

19. I am confused

demand characterizes the demand for goods and services produced by individual companies in an demand characterizes the demand for goods and services produced by all firms in industry; while that industry. O Increasing; decreasing Price elastic; price inelastic Price sensitive; price insensitive Price inelastic; price elastic O Price insensitive; price sensitive.

20 Given the demand equation x = 4 + where p represents the price in dollars and x the number of units, determine the elasticity of demand when the price p is equal to $5. Р Elasticity of Demand = Therefore, demand is O elastic O unitary O inelastic when price is equal to $5 and a small increase in price will result in O a decrease in total revenue. O little to no change in total revenue. O an increase in total revenue.

Holding supply constant, a decrease in demand leads to Select one: O a. higher prices and higher quantity supplied. O b. lower prices and higher quantity supplied. O c. higher prices and lower quantity supplied. O d. lower prices and lower quantity supplied.