Answer:
d. 12.5%.
Explanation:
Price elasticity of supply measures the degree of responsiveness of quantity supplied to changes in price.
If the price elascitiy of supply is 0.4, it indicates that supply is inelastic. This means that a change in price has little effect on quantity supplied.
Price elasticity of supply = percentage change in quantity supplied / percentage change in price
0.4 = 5% / percentage change in price
percentage change in price = 12.5%
I hope my answer helps you.
Answer:
while inflation is undesirable, the breakdown of the economy that would occur in the absence of an inflation tax would be worse.
Explanation:
This is because, they believe that, when the economy under inflation is taxed, the money generated would be used to cushion the effects of those inflation through adequate management and administering of policies and projects.
Answer:
A value exchange is a description of a transaction which can include, but may not necessarily be, financial in nature. Examples of a value exchange between a brand and a customer can include: The trading of money for goods or services (a straightforward financial transaction)
Explanation:
To promote by introducing your product
Answer:
Sam
Tereza
Andrew could be right, but it depends on the magnitude changes,
Explanation:
Lorenzo is wrong because if supply decreased and the demand was unit elastic, then the equilibrium quantity will fall but the price will increase.
Neha is also wrong because a perfect inelastic supply is a vertical line parallel to the y-axis, then if this supply decreases (shifts to the left) the equilibrium quantity will decrease but the price will increase.
Sam is right because a perfectly elastic demand is a horizontal line parallel to the x-axis. and if supply decreases (or increases) the price will remain the same but the equilibrium quantity will decrease ( or if demand increases, it will increase).
Teresa is also right because a perfect elastic supply looks the same as a perfect elastic demand, then if demand decreases (or increases) price will remain the same and the equilibrium quantity will decrease (or if demand increases, it will increase).
Andrew could be right but depends on the magnitude change in demand and supply. If both (supply and demand) decrease in the same proportion, the equilibrium quantity will decrease, and the price could remain the same. But, it depends on the magnitude shifts.
