The price elasticity of supply is __________ elastic over time because ___________.
A. less; producers get accustomed to the price changes
B. less; the ideal number of firms have time to move into or out of the industry
C. more; producers have a longer time to adjust their production decisions
D. more; producers get accustomed to the price changes
C. more; producers have a longer time to adjust their production decisions
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The permanent income hypothesis indicates that increased savings will cause an increase in long term income
a. True b. False Indicate whether the statement is true or false
Assume that the real GDP of a developing nation increases from $120 billion to $140 billion while its population expands from 100 to 110 million. As a result, real GDP per capita has increased by about ________.
A. $64 per person B. $88 per person C. $72 per person D. $56 per person