Considering a given increase in price due to a tax, the more price elastic the supply curve is, the:
A. larger the drop in equilibrium quantity.
B. smaller the drop in equilibrium quantity.
C. smaller the amount of deadweight loss created.
D. less surplus that is transferred to consumers.
A. larger the drop in equilibrium quantity.
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The supply of a good is more price elastic,
a. the fewer alternatives there are to producing the good in question b. the more broadly the market for the good is defined c. the longer the time horizon over which it is measured d. the higher the cost of production e. the more elastic the demand for that good.
The doubling of a firm's feedlot capacity which results in a doubling of production is characteristic of
A) A shift in the iso-revenue line. B) Increasing returns to scale. C) Constant returns to scale. D) A shift in the iso-cost line.