Multiple Choice
Suppose a decrease in world demand for potash (used in the production of fertilizer) decreases the price from $400 per tonne to $240 per tonne.Annual Canadian production decreases from 12 million tonnes to 8 million tonnes.What is the elasticity of supply of Canadian potash?
A) 0.4
B) 0.8
C) 0.75
D) 1.0
E) 1.25
Correct Answer:
Verified
Correct Answer:
Verified
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