The Price Elasticity of Supply Is Always

question 41

Multiple Choice

The price elasticity of supply is always

• A) zero or a positive number.
• B) one.
• C) greater than one.
• D) a positive number only because it is customary to take its absolute value.
• E) between zero and one.

Recognize the relationship between comparative advantage and trade outcomes.

Identify the conditions under which trade can increase or decrease consumer and producer surplus.

Understand the role and impact of international trade organizations and agreements.

Evaluate the potential gains from free versus restricted trade.

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