Multiple Choice
Holding all else constant,if a pencil manufacturer increases production by 25 percent when the market price of pencils increases from $0.50 to $0.60,what is the price elasticity of supply,using the midpoint method
A) elastic, since elasticity is equal to 1.38
B) inelastic, since elasticity is equal to 1.381
C) inelastic, since elasticity is equal to 0.72
D) elastic, since elasticity is equal to 0.72
Correct Answer:
Verified
Correct Answer:
Verified
Q154: In general terms,what does elasticity measure<br>A)how price
Q155: Holding all other factors constant,if raising the
Q156: What happens if sellers respond substantially to
Q157: What can you conclude about the price
Q158: As elasticity of demand increases,what happens to
Q160: What happens as elasticity of supply rises<br>A)The
Q161: When will the supply of a good
Q162: Suppose that an increase in the price
Q163: How does total revenue change as one
Q164: On a downward-sloping linear demand curve,where would