Q1. Which of the following is least likely to affect the elasticity of supply for a good? A) The uniqueness of production inputs. B) The time frame for making the supply decision. C) The relative amount of income spent on the good.
Q2. Economics commentator Gail Brythe is discussing the different factors that influence the elasticity of supply. She states the following: Statement 1: Elasticity of supply is greater when a good or service can only be produced with unique or rare inputs. Statement 2: Typically, a good’s momentary supply elasticity is higher than its short-run supply elasticity, which in turn is higher than its long-run supply elasticity. With respect to Brythe’s statements: A) only statement 1 is incorrect. B) only statement 2 is incorrect. C) both are incorrect. | 
发表于 2008-12-31 09:34
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