Author Question: The price elasticity of supply of laptop computers equals 1.5 if A) a rightward shift of the ... (Read 68 times)

mp14 · **on:** Jun 29, 2018

The price elasticity of supply of laptop computers equals 1.5 if

A) a rightward shift of the demand curve for laptops causes the quantity supplied to increase by 1.5 percent.
B) a rightward shift of the demand curve for laptops causes a 1.5 percent increase in their price.
C) for every 1 percent that laptop prices increase, computer makers produce another 1.5 percent laptops.
D) for every 1.00 that laptops increase in price, computer makers produce another 150 laptops.

Question 2

In the short run, a perfectly competitive firm will make an economic profit as long as

A) it maximizes its profit.
B) P > AVC.
C) P > AFC.
D) P > ATC.