A leftward shift in the supply curve of product X will increase equilibrium price to a greater extent the:
A. more elastic the supply curve.
B. larger the elasticity of demand coefficient.
C. more elastic the demand for the product.
D. more inelastic the demand for the product.
Answer: D
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Assume that it is predicted that for the years after you graduate from college, the entire economy will experience a long period of prosperity when incomes grow rapidly
What type of industry would be the best for you to find employment if this prediction is correct? An industry that produces a product that is A) income elastic. B) income inelastic. C) inferior. D) a substitute good. E) none of these industries
A firm maximizes profits by charging a lower price to foreign buyers if
A. it has a greater monopoly power in the foreign market than it has in its home market. B. the buyers in the home country have access to cheaper imports from the rest of the world. C. the foreign demand for its good is more elastic than the domestic demand. D. the size of the foreign market is much larger than the home market.