Price elasticity of supply:
A. is the percentage change in the quantity supplied of a good or service divided by the percentage change in the price of the good or service.
B. measures consumers' responsiveness to a change in price.
C. is always a negative number.
D. is the percentage change in the price of a good or service divided by the percentage change in the quantity supplied of the good or service.
A. is the percentage change in the quantity supplied of a good or service divided by the percentage change in the price of the good or service.
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With a monopolist's outcome, producer surplus is:
A. lower than that of a competitive market. B. higher than that of a competitive market. C. the same as that of a competitive market. D. Any of these is possible.
The law of comparative advantage indicates that if a group of individuals wants to maximize their joint output, then each good should be supplied by
A) the person with the most advanced technical knowledge. B) the person that can accomplish the task most rapidly. C) the person with the lowest wage rate. D) the low opportunity cost producer.