Author Question: If a 1 percent increase in price leads to a .7 percent increase in quantity supplied in the short ... (Read 94 times)

craiczarry · **on:** Jul 1, 2018

If a 1 percent increase in price leads to a .7 percent increase in quantity supplied in the short run, the short-run supply curve is
a. elastic.
b. inelastic.
c. unit elastic.
d. perfectly inelastic.

Question 2

A demand curve will shift out for any of the following reasons except
a. preference for a good increases.
b. price of a substitute falls.
c. income rises.
d. price of a complement falls.