Suppose the value of the price elasticity of supply is 4. What does this mean?
A) For every $1 increase in price, quantity supplied increases by 4 units.
B) A 1 percent increase in the price of the good causes quantity supplied to increase by 4 percent.
C) A 1 percent increase in the price of the good causes the supply curve to shift upward by 4 percent.
D) A 4 percent increase in the price of the good causes quantity supplied to increase by 1 percent.
B
You might also like to view...
The schedules in the table give the marginal social benefit and marginal social cost of a DVD. If the number of DVD produced is cut to 2 a week, then the ________
A) minimum supply-price of the second DVD is $18 B) price is $18 a DVD C) opportunity cost of the second DVD is $22 D) value of the second DVD is $20
What are the main reasons for deviations from PPP? Give, at least, 5 reasons with a short explanation
What will be an ideal response?