Because price and quantity supplied are directly​ related, we would expect the sign of the price elasticity of supply to be:_________

Answer:

Positive

Explanation:

Price elasticity is the measure to assess the responsiveness of the supply of a good or service after changing the price of the good or service.

According to basic principles of economics, the price and supply of good or services are directly proportional, it means that if the price increases the supply of good increases and vice versa. The sign of the price elasticity will be positive because they are directly related.

Form example

At Price $5 supply is 200 units

At price $6 supply 250 units

Calculate the change in price and change in supply as well.

Cange in price = ($6 - $5) / 5 = 0.2 = 20%

Cange in supply = 250 units - 200 units = 50 units / 200 unit = 0.25 = 25%

Price elasticity of supply = Change in supply / Change in price

Price elasticity of supply = 25% / 20%

Price elasticity of supply = 1.25

Hence, the sign is positive

Question 10 of 10
Harland just got his second major credit card, so his credit score rose from
671 to 711. According to the following table for a $150,000 mortgage, how
much less per year would Harland have to pay on a $150,000 mortgage with
the new credit score?
FICO
score
720-850
Interest
rate
5.59%
Monthly
payment
$860
700-719
5.71%
$872
$924
675-699
6.25%
7.40%
620-674
560-619
500-559
8.53%
$1039
$1157
$1238
9.29%

When the demand is equal or lower than the minimum efficient scale, multiple production facility locations are preferred. True False

During the taking of its physical inventory on December 31, Barry's Bike Shop incorrectly counted its inventory as $222,138.00 instead of the correct amount of $184,409.00. The effect on the balance sheet and income statement would be:______.
a. assets overstated by $52,094.00; retained earnings understated by $52,094.00; and net income statement understated by $52,094.00.
b. assets overstated by $223,182.00; retained earnings understated by $171,088.00; and no effect on the income statement.
c. assets, retained earnings, and net income all overstated by $52,094.00.
d. assets and retained earnings overstated by $171,088.00; and net income understated by $223,182.00.

Last year, Big W Company reported earnings per share of $2.70 when its stock was selling for $40.50. If its earnings this year increase by 10% and the P/E ratio remains constant, what will be the price of its stock?

In U.S. price support programs, the "loan rate" is:______.
a. determined by Federal Reserve policy.
b. the interest rate a farmer must pay if he borrows from the government with his crop as collateral.
c. the difference between the market price and the target price.
d. the proportion of the farmer's crop he can loan to the government.
e. the effective price (i.e. price floor) for the commodity to ensure loan repayment.

an increase In long run aggregate supply can be expected to _______ the price level and ______ the natural rate of unemployment.​

The money lost by not working is called