Suppose the demand curve for hybrid cars shifts to the right. This will cause a relatively small increase in the price of hybrid cars if
A) both demand and supply are inelastic. B) demand is elastic and supply is inelastic.
C) demand is inelastic and supply is elastic. D) both demand and supply are elastic.
D
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Which of the following is a normative question?
A) How often do banks fail? B) What is the value of a human life? C) How much does government spending stimulate aggregate output? D) How do we calculate the total value of activity in an economy?
One reason why the price elasticity of supply for DVD players is greater than one is that
A) the cost of producing DVD players is small. B) the storage of DVD players is not possible. C) DVD players can be easily stored. D) the demand for DVD players is fairly large. E) DVD players require relatively advanced technology for their production.