Ceteris paribus, if a 4% increase in price leads to a 6% increase in the quantity supplied, then:
a. supply is elastic
b. supply is unit elastic.
c. supply is inelastic.
d. the supply curve is perfectly vertical.
a
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One of the reasons that successful proprietors may be reluctant to borrow money from a bank to expand their business is that
a. expanded businesses generally generate lower rates of profit b. the bank would become a part owner c. unlimited liability cramps ambition d. the bank's liability insurance isn't sufficient to cover expected liabilities e. issuing stock to finance the expansion is less costly
International trade under a floating exchange rate system
a. has been trouble-free owing to the stabilizing role of speculators in the currency markets. b. has suffered from so many problems that the volume of trade has declined significantly. c. exposes businesses to unavoidable risks when exchange rates change. d. has been subject to wild runs on currencies that were on the verge of devaluation.