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If a Rise in the Price of Good a from $100

Question 165

Multiple Choice

If a rise in the price of good A from $100 to $120 results in an increase in quantity supplied from 10,000 to 12,000 units, then the elasticity of supply is


A) 0.625.
B) 0.8.
C) 1.25.
D) 0.2.
E) 1.0.

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