Multiple Choice
Suppose that in a month the price of movie rentals increases from $2 to $2.20. At the same time, the quantity of movie rentals supplied increases from 100 to 110. The price elasticity of supply for movie rentals (calculated using the initial value formula) is
A) negative.
B) inelastic.
C) unit elastic.
D) elastic.
Correct Answer:
Verified
Correct Answer:
Verified
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