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Suppose That the Price of a Money Clip Increases from $0.75

Question 3

Multiple Choice

Suppose that the price of a money clip increases from $0.75 to $0.90 and quantity supplied rises from 8,000 units to 10,000 units. Use the midpoint formula to calculate the price elasticity of supply.


A) 1.22
B) 1.0
C) 0.82
D) 0.07

Correct Answer:

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