The elasticity of supply coefficient for lobster is estimated to be equal to 0.6 . It is expected, therefore, that a 10% decrease in price would lead to:
a. a 6% decrease in the quantity of lobsters supplied.
b. a 6% increase in the quantity of lobsters supplied.
c. a 10% decrease in the quantity of lobsters supplied.
d. a 10% increase in the quantity of lobsters supplied.
a
Economics
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Because perfectly competitive markets rarely exist in the real world, the model has limited usefulness
a. True. b. False.
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Trade restrictions
A. Increase the standard of living for the country as a whole. B. Reduce the number of hours employees must work. C. Reduce the gains from trade for the country as a whole. D. Increase the gains from trade for poor countries.
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