If the price of corn increases by 20 percent and the quantity supplied of corn increases by 30 percent, then supply is
A) elastic and the elasticity of supply equals 1.5.
B) inelastic and the elasticity of supply equals 1.5.
C) elastic and the elasticity of supply equals 0.66.
D) inelastic and the elasticity of supply equals 0.66.
E) either elastic or inelastic, but more information about the elasticity of demand is needed to determine which.
A
Economics
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For a natural monopoly, the efficient quantity is produced when the firm is regulated so that
A) P = ATC. B) P > ATC. C) P = MC. D) P > MC. E) P < MC.
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In 2015, you buy a beautiful vintage 1965 Thunderbird convertible. This purchase would
a. be included in the GDP for 2015. b. not be included in the GDP for 2015. c. be included in both the GDP for 1965 and 2015. d. be in the GDP for 2015 at a depreciated value.
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