If a 5 percent increase in price results in a 3 percent increase in the quantity supplied, the elasticity of supply is

Refer to Figure 12-9. At price P3, the firm would produce

A) Q2 units B) Q3 units. C) Q4 units. D) Q5 units.

Demand for clothing tends to be

a. elastic because there are few substitutes for clothing b. inelastic because there are few substitutes for clothing c. elastic because expenditures for clothing represent a large part of the consumer's budget d. inelastic because expenditures for clothing represent a large part of the consumer's budget e. elastic because it is a broadly defined good