Question 1
Movements along the supply curve are a result of changes in __________.
a.)input prices
b.)price
c.)regulations
d.)resource access
Question 2
When a good is unit elastic, the absolute value of the elasticity is ___________.
a.)greater than 10
b.)less than one
c.)equal to one
d.)greater than one
Question 3
In 2007, the government attempted to end inflation by enforcing a price freeze on basic commodities such as corn, sugar and eggs. This led to runs on grocery stores and other places that sold such items, since in some cases the prices were rolled back to almost 50% of what they had been. A shortage occurred because people rushed to stock up on these items as much as they could.
