The concept of elasticity of supply measures the responsiveness of the :

The concept of elasticity of supply measures the responsiveness of the
 
  A) quantity supplied to a change in the price.
  B) price to a change in the quantity supplied.
  C) quantity supplied to a change in the quantity demanded.
  D) quantity demanded to a change in the quantity supplied.

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Ques. 2

In the table above, the deadweight loss is zero when ________ umbrellas are produced and sold.
 
  A) 20
  B) 40
  C) 60
  D) 80

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Ques. 3

Lizzie's budget line is shown in the figure above. If the price of a cookie rises, Lizzie's real income in terms of cookies ________ and her real income in terms of magazines ________.
 
  A) decreases; increases
  B) increases; decreases
  C) decreases; does not change
  D) increases; does not change

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Ques. 4

An equilibrium in game theory in which the players make and share the monopoly profit is called
 
  A) the Nash equilibrium.
  B) the cooperative equilibrium.
  C) a contestable market equilibrium.
  D) limit pricing.

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Ques. 5

Private markets will not provide the efficient quantity of a public good because
 
  A) of the principle of minimum differentiation.
  B) public goods are rival and excludable.
  C) of rational ignorance.
  D) of the free-rider problem.

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Ques. 6

The above figure shows the demand and cost curves for a firm in monopolistic competition. The firm maximizes its profit by
 
  A) producing 8 units at a price of 5 each.
  B) producing 8 units at a price of 15 each.
  C) producing 4 units at a price of 20 each.
  D) producing 12 units at a price of 10 each.