Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P x . Assume that P = $8, I = 200, and P x = $10.
-A measure of the responsiveness of quantity supplied to changes in price is known as _____.
A)cross-price elasticity
B)price elasticity of demand
C)price elasticity of supply
D)income elasticity
E)point elasticity

Question

Quizplus · Accepted Answer

The measure of the responsiveness of quantity supplied to changes in price is known as price elasticity of supply.

Scenario 5.1 The Demand for Noodles Is Given by the Following Equation