If the price elasticity of supply is 0.75, it would imply that a _____
a. a 100 percent increase in price would increase the quantity supplied by 75 percent
b. doubling of the price would increase the quantity supplied by 175 percent
c. 50 percent increase in price would increase the quantity supplied by 25 percent
d. 75 percent increase in price would increase the quantity supplied by 100 percent
e. 120 percent increase in price would increase the quantity supplied by 90 percent
e
You might also like to view...
What is a household's choice set defined as?
What will be an ideal response?
The consumption function
A. is a relationship between annual consumption and annual disposable income in an economy. B. will shift upward if aggregate household wealth declines. C. implies that annual consumption in an economy will be zero if disposable income is zero. D. is a flat line with zero slope.