What is the relationship between the marginal cost, minimum supply-price, and supply?
What will be an ideal response?
The marginal cost is the cost of producing an additional unit of a good. The marginal cost is the minimum price that producers must receive to induce them to offer one more unit of a good or service for sale. This minimum supply-price determines the supply of the good, so the supply curve is the same as the marginal cost curve.
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Studies show that the demand for gasoline is:
A. price inelastic in the short run but elastic in the long run. B. price inelastic in both the short and long run. C. price elastic in the short run but inelastic in the long run. D. price elastic in both the short and long run.
In a classical model
A. equilibrium real GDP is neither determined by aggregate supply nor by aggregate demand. B. equilibrium real GDP is determined by both aggregate supply and aggregate demand. C. equilibrium real GDP is determined by the government. D. equilibrium real GDP is supply determined.