Refer to Figure 10.3. What price will the monopsonist pay when maximizing profit?

Economists studying the effect of the China shock on the U.S. economy point out that the firms most hurt by Chinese imports have been

A) evenly distributed across the United States. B) almost exclusively located in the Northeast. C) concentrated in certain states, particularly in the Midwest and Southeast. D) located primarily along the Pacific coast.

Answer the following statement(s) true (T) or false (F)

1. The price elasticity of supply measures the relative change in the quantity consumers demand that results from a change in price. 2. The price elasticity of supply is defined as the percentage change in the quantity supplied multiplied by the percentage change in price. 3. In a condition of perfectly inelastic supply, an increase in price will not change the quantity supplied. 4. In a condition of perfectly elastic supply, the elasticity of supply is 100. 5. Supply is usually more elastic in the short run than in the long run.