If one really believes that price spikes known as "price gouging" are due to a surge in greed among suppliers, then
A) they haven't quite mastered the economic way of thinking.
B) their comfort in knowing that thousands if not millions of others agree with them is not sufficient economic evidence to conclude that their claim is correct.
C) their claim implies that significant price decreases are due to a sudden reduction in greed among suppliers.
D) all of the above are true.
D
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If a pizza seller reduces its prices, the price cut will
A) have no effect on the demand for competing sellers' pizza. B) increase the seller's gross revenue. C) increase the seller's net revenue. D) shift the seller's demand curve if competing pizza sellers match the price decreases.
The price elasticity of supply when the supply curve is Q = 5 is
A) 5. B) perfectly inelastic. C) perfectly elastic. D) Cannot be calculated from the information provided.