Suppose when the price of shoe laces goes from $1 to $2 per pair, production increases from 95 million pairs to 105 million pairs per year. Using the mid-point method, the price elasticity of supply is:

What is an advantage of a command economy?

a. basic services such as healthcare can be provided to all citizens b. innovation and new ideas result in great wealth for entrepreneurs c. starvation is impossible d. the production of consumer goods is a top economic priority

Which of the following statements is false?

A) A change in the price of good X will usually change the quantity supplied of good X, ceteris paribus. B) A change in the number of sellers of a good can change the supply of that good. C) Price and quantity supplied are directly related. D) A vertical supply curve represents a direct relationship between price and quantity supplied.