A Price Elasticity of Supply of 1

Multiple Choice

A price elasticity of supply of 1.5 implies that

A) a 20 percent increase in the quantity supplied increases the price by 30 percent.
B) total revenue is 1.5 times total cost.
C) a 20 percent increase in the price increases the quantity supplied by 30 percent.
D) a 20-unit increase in supply reduces the price by $30.
E) a $20 increase in the price increases the quantity supplied by 30 units.