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If the Price Elasticity of Supply for a Product Is

Question 171

Multiple Choice

If the price elasticity of supply for a product is 1.4, then the percentage change in quantity supplied is:


A) larger than the percentage change in price, and supply is price elastic.
B) larger than the percentage change in price, and supply is price inelastic.
C) smaller than the percentage change in price, and supply is price elastic.
D) smaller than the percentage change in price, and supply is price inelastic.

Correct Answer:

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