Suppose a 4 per cent increase in price results in a 2 per cent increase in the quantity supplied of a good.Calculate the price elasticity of supply and characterise the product.
A) 2; The product is elastic.
B) 0) 2; The product is inelastic.
C) 0) 5; The product is inelastic.
D) 50%; The product is inelastic.
Correct Answer:
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Q195: Figure 4.8 Q198: Figure 4.7 Q241: Suppose the value of the price elasticity Q244: Bringing oil to the market is a Q251: The price elasticity of supply is equal Q259: If, for a given percentage increase in Q260: If firms do not increase their quantity Q269: Over longer periods of time, increases in Q272: Inelastic supply occurs whenever the elasticity of Q290: Suppose the demand curve for hybrid cars
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