Solved

Suppose a New Manufacturing Technology Results in an Expansion in the Supply

Question 66

Multiple Choice

Suppose a new manufacturing technology results in an expansion in the supply of golf balls in the United States of 15%.If the elasticity of demand of golf balls sold in the US is -0.4,the new equilibrium price will be


A) 0.375% lower.
B) 16% lower.
C) 37.5% higher.
D) 37.5% lower.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions