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Author Question: If a 3 percent increase in the price of tennis shoes leads to a 7 percent increase in the number of ... (Read 46 times)

james9437

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on: Jun 29, 2018
If a 3 percent increase in the price of tennis shoes leads to a 7 percent increase in the number of tennis shoes supplied
 
  A) the elasticity of supply equals 0.43.
  B) the elasticity of supply equals 2.33.
  C) income elasticity equals 2.33.
  D) supply is inelastic.

Question 2

Which of the following is true for BOTH monopoly and a perfectly competitive firm?
 
  A) The demand for the individual firm's product is perfectly elastic.
  B) Economic profits can be sustained indefinitely over time.
  C) The marginal revenue curve is horizontal at the market equilibrium price.
  D) Profits are maximized by producing at the level of output where marginal revenue is equal to marginal cost.


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qytan

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

D


james9437

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Reply #2 on: Jun 29, 2018
Thank you


qytan

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Reply #3 on: Jun 29, 2018
No problemo


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