Multiple Choice
Suppose that the price elasticity of supply is one and the quantity supplied increases by 5%. Other things being equal, the percentage change in the price should be
A) a 0.5% increase in the price.
B) a 5% increase in the price.
C) a 0.2% increase in the price.
D) a 2% increase in the price.
Correct Answer:
Verified
Correct Answer:
Verified
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