Suppose there has been an increase in supply and a decrease in demand. In which of the following cases would the equilibrium quantity be indeterminate?
a. The supply curve shifts a measurable amount to the right.
b. The demand curve shifts a measurable amount to the left.
c. The relative size of the shifts in the two curves is unknown.
d. The relative size of the shifts in the two curves is equal.
c. The relative size of the shifts in the two curves is unknown.
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If an increase in price causes total expenditure on a product to decrease, then the price elasticity of demand is: a. inelastic
b. elastic. c. unit elastic. d. zero.
A country has a comparative advantage over another in the production of gadgets if it can produce
a. more gadgets than can the other country. b. more gadgets than can any other country. c. gadgets more efficiently than it can produce any other good. d. gadgets at lower opportunity cost than can the other country.