If the Price Elasticity of Supply Is 4, an Increase

Multiple Choice

If the price elasticity of supply is 4, an increase in the price of Good X by 5 percent:

A) causes the quantity supplied of Good X to rise 20 percent.
B) causes the quantity supplied of Good X to fall 20 percent.
C) causes the quantity supplied of Good X to rise 1.25 percent.
D) causes the quantity supplied of Good X to fall 1.25 percent.