A firm would be willing to supply 500 frisbees per day at a price of $3.00 each. At a price of $5.00 each the firm would be willing to supply 1100 frisbees. Using the midpoint method, the elasticity of supply would be

Select one:

a.0.67.

b.0.75.

c.1.0.

d.1.5.

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According to the graph shown, if the government imposes a binding price floor of $18.00 in this market, the result would be a

Select one:

a.surplus of 100.

b.surplus of 200.

c.shortage of 100.

d.shortage of 200.

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A government-imposed maximum price at which a good can be sold is called a price

Select one:

a.floor.

b.ceiling.

c.support.

d.equilibrium.

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Price discrimination is a situation when a producer

Select one:

a.charges different prices in different markets

b.charges same price

c.Charges many prices

d.All of the above.

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Which of the following statements would you consider to be a normative one?

Select one:

a.Faster economic growth should result if an economy has a higher level of investment

b.Changing the level of interest rates is a better way of managing the economy than using taxation and government expenditure

c.Higher levels of unemployment will lead to higher levels of inflation

d.The average level of growth in the economy was faster in the 1990s than the 1980s