1. Assume that the price elasticity of demand for glass is 1.7 and the price elasticity of...
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1. Assume that the price elasticity of demand for glass is 1.7 and the price elasticity of supply for glass is 0.8. If supply rises by 18%, the price of glass will
- A. rise by 7.2%.
- B. fall by 7.2%.
- C. rise by 13.88%.
- D. fall by 13.88%.
2. If the government imposes a maximum price for milk that is above the equilibrium price,
- A. demand for milk will be greater than supply.
- B. quantity demanded of milk will be less than quantity supplied.
- C. the available milk supply will have to be rationed.
- D. this maximum price for milk will have no economic impact.
3. If a firm is indifferent between operating and shutting down in the short run, then it must be true that
- A. total revenue equals fixed cost.
- B. total revenue equals total variable cost.
- C. total revenue equals total cost.
- D. fixed cost is zero.
Related Book For
Microeconomics Theory and Applications with Calculus
ISBN: 978-0133019933
3rd edition
Authors: Jeffrey M. Perloff
Posted Date: