Question

Please help with these questions

Question 31 0.4 pts If the owner of Kuji's Treats finds that, in the long run, he can trade one type of input for another, the price elasticity of supply is O unitary elastic. O perfectly elastic. O relatively elastic. O relatively inelastic. O perfectly inelastic. Question 32 0.4 pts When supply shifts to the right and demand stays constant, the equilibrium stays the same; increases O decreases; increases decreases; decreases O increases; decreases increases: increases Question 33 0.4 pts Marginal decisions are said to be made on the consideration. unit(s) under O additional total O average of sum of O previous

Answer 1

Question 31.

The price elasticity of supply is the  % change in quantity supplied divided by the % change in price.

Answer is relatively elastic. When the price is relatively elastic, it means that the % change in quantity is more than the % change in price.

Unitary elasticity means the change in quantity is the same as change in price.

Perfectly elastic means a small change in price will lead to the quantity supplied to become zero. The supply curve. will be horizontal.

Question 32.

Increases and increases.

The supply curve shifts to the right, which means supply increases. The quantity demanded stays the same. This would decrease the equilibrium price and increase the quantity.

Question 33.

Additional. Marginal means additional or extra.

Question 34.

Positive incentive.

Question 35.

Microeconomics.

Microeconomics deals with the decisions made by firms and individuals in the allocation of scare resources. Supply and demand is an example of microeconomics.