Author Question: The elasticity of supply coefficient for bicycles is estimated to be equal to 1.5 . It is expected, ... (Read 121 times)

debasdf · **on:** Jun 30, 2018

The elasticity of supply coefficient for bicycles is estimated to be equal to 1.5 . It is expected, therefore, that a 4 increase in price would lead to:
a. a 4 decrease in the quantity of bicycles supplied.
b. a 4 increase in the quantity of bicycles supplied.
c. a 6 decrease in the quantity of bicycles supplied.
d. a 6 increase in the quantity of bicycles supplied.

Question 2

Credit card balances are:
a. included in both M1 and M2.
b. included in M1 but not M2.
c. included in M2 but not M1.
d. not included in either M1 or M2.