Paolo owns a pizza shop. The price of pizza recently increased from $3 to $5 a slice. Paolo responded by increasing the quantity of slices he supplied from 100 to 150 slices per day. By the midpoint method, Paolo's price elasticity of supply is:
A) 1.25.
B) 0.8.
C) 0.75.
D) 2.5.
Correct Answer:
Verified
Q195: A perfectly elastic supply curve is:
A) horizontal.
B)
Q196: If the price elasticity of supply is
Q197: Use the following to answer questions:
Figure: Supply
Q198: The price elasticity of supply measures:
A) the
Q199: For a normal good, the income elasticity
Q201: Use the following to answer questions:
Figure: The
Q202: Use the following to answer questions:
Figure: The
Q203: Use the following to answer questions:
Figure: The
Q204: In the short run, the price elasticity
Q205: Use the following to answer questions:
Figure: The
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