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    Microeconomics Theory and Applications Study Set 2
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    Exam 2: Supply and Demand
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    If an Increase in the Price of Oil from $20
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If an Increase in the Price of Oil from $20

Question 31

Question 31

Multiple Choice

If an increase in the price of oil from $20 to $24 per barrel induces firms to increase production from 1 million to 1.6 million barrels,then the elasticity of supply is:


A) 1.54.
B) 3.
C) 2.25.
D) 2.

Correct Answer:

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