Recall the Application About the Short-Run and Long-Run Elasticity of Supply

question 181

Multiple Choice

Recall the Application about the short-run and long-run elasticity of supply of coffee to answer the following question(s) .
-Recall the Application. If the price of coffee beans increases by 20 percent and stays there for a year, the quantity of coffee supplied will ________ by a relatively ________ amount.

• A) increase; large
• B) increase; small
• C) decrease; large
• D) decrease; small

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Definitions:

Unemployment

A situation where individuals who are willing and able to work cannot find a job.

Persistent Unemployment

A situation where unemployment remains high or continues over a long period, often due to structural factors in the economy.

Wage Discrimination

The practice of paying different wages to employees who perform similar jobs, based on non-job-related factors like gender, race, or age.

Efficiency Wage

A wage set above the market equilibrium to increase productivity by encouraging higher effort or reducing turnover among employees.