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1. The Law of Supply suggests that the price-elasticity of supply is:
A. Positive
B. Negative
C. Always greater than 1
D. Always less than 1
2. If a 10 percent increase in the price of one good results in no change in the quantity demanded of another good, then it can be concluded that the two goods are:
A. Complementary goods
B. Substitute goods
C. Independent goods
D. Normal goods
3. Which of the following statements is correct?
A. Marginal utility is the cumulation or summation of total utility
B. Total utility is the cumulation or summation of marginal utility
C. Total utility is the product of multiplying price times marginal utility
D. Total utility is the change in marginal utility as quantity consumed increases
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When talking about aggregate supply, it is necessary to
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