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When the Price of Cable Modems Decreased from $100 to $85

Question 363

Multiple Choice

When the price of cable modems decreased from $100 to $85, the number of cable modems produced fell from 1,000 per week to 850 per week. Using this information, we know the supply of cable modems is


A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly inelastic.

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