"Question 1" (True or False) Answer the following questions and state your brief explanation. i. If two goods are complementary, it means that when the price of one good increases, the demand for the other rises (TRUE/FALSE) Explain! ii. If the price of gasoline rises by 10 percent and new car sales fall by 5 percent, this indicates that these two goods are complementary (TRUE/FALSE) Explain! ii. The price elasticity number for necessities will be greater than 1. (TRUE/FALSE) Explain! iv. Demand is elastic if the consumer has only a few substitutes to choose from. (TRUE/FALSE) Explain! Short-run choices imply that at least one factor of production is fixed. (TRUE/FALSE) Explain! v. vi. The productivity of any input is independent and is not affected by the other resources that are used. (TRUE/FALSE) Explain! vii. When a firm is able to achieve the output indicated by a production function, it is producing with technical efficiency. (TRUE/FALSE) Explain! viii. The law of diminishing returns indicates that the marginal physical product of a variable input declines as more of it is employed, ceteris paribus. (TRUE/FALSE) Explain!
"Question 1" (True or False) Answer the following questions and state your brief explanation. i. If two goods are complementary, it means that when the price of one good increases, the demand for the other rises (TRUE/FALSE) Explain! ii. If the price of gasoline rises by 10 percent and new car sales fall by 5 percent, this indicates that these two goods are complementary (TRUE/FALSE) Explain! ii. The price elasticity number for necessities will be greater than 1. (TRUE/FALSE) Explain! iv. Demand is elastic if the consumer has only a few substitutes to choose from. (TRUE/FALSE) Explain! Short-run choices imply that at least one factor of production is fixed. (TRUE/FALSE) Explain! v. vi. The productivity of any input is independent and is not affected by the other resources that are used. (TRUE/FALSE) Explain! vii. When a firm is able to achieve the output indicated by a production function, it is producing with technical efficiency. (TRUE/FALSE) Explain! viii. The law of diminishing returns indicates that the marginal physical product of a variable input declines as more of it is employed, ceteris paribus. (TRUE/FALSE) Explain!
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 27EQ
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Transcribed Image Text:"Question 1" (True or False)
Answer the following questions and state your brief explanation.
i.
If two goods are complementary, it means that when the price of one good increases, the demand
for the other rises (TRUE/FALSE) Explain!
ii.
If the price of gasoline rises by 10 percent and new car sales fall by 5 percent, this indicates that
these two goods are complementary (TRUE/FALSE) Explain!
ii.
The price elasticity number for necessities will be greater than 1. (TRUE/FALSE) Explain!
iv.
Demand is elastic if the consumer has only a few substitutes to choose from. (TRUE/FALSE) Explain!
Short-run choices imply that at least one factor of production is fixed. (TRUE/FALSE) Explain!
V.
vi.
The productivity of any input is independent and is not affected by the other resources that are
used. (TRUE/FALSE) Explain!
vii.
When a firm is able to achieve the output indicated by a production function, it is producing with
technical efficiency. (TRUE/FALSE) Explain!
viii.
The law of diminishing returns indicates that the marginal physical product of a variable input
declines as more of it is employed, ceteris paribus. (TRUE/FALSE) Explain!
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