Multiple Choice
If the quantity supplied of candy increases by 1% when the price of candy increases by 2%, which of the following is TRUE?
A) Supply for candy is elastic, and price elasticity of supply = 2.0.
B) Supply for candy is inelastic, and price elasticity of supply = 2.0.
C) Supply for candy is elastic, and price elasticity of supply = 0.5.
D) Supply for candy is inelastic, and price elasticity of supply = 0.5.
Correct Answer:
Verified
Correct Answer:
Verified
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