Multiple Choice
Suppose a 4 per cent increase in price results in a 2 per cent increase in the quantity supplied of a good.Calculate the price elasticity of supply and characterise the product.
A) 2; the product is elastic.
B) 0.2; the product is inelastic.
C) 0.5; the product is inelastic.
D) 50%; the product is inelastic.
Correct Answer:
Verified
Correct Answer:
Verified
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