Suppose that the percentage change in supply is 20%, the price elasticity of demand is 3, and the percentage change in the equilibrium price is 4%. What is the price elasticity of supply?
A. 0
B. 2
C. 4
D. 5
Answer: B
You might also like to view...
Suppose that the real Gross Domestic Product (GDP) growth rate for a country was 5 percent and the population growth rate was 3 percent. What would the per capital real Gross Domestic Product (GDP) growth rate be for this country?
A) -8 percent B) -2 percent C) 2 percent D) 8 percent
When there is an excess supply of a product in an unregulated market, the tendency is for
A. quantity demanded to decrease. B. price to rise. C. price to decrease. D. quantity supplied to increase.
One shortcoming of real GDP as an indicator of society's social well-being is that it fails to take into account the:
A. growth in productivity. B. increase in the quantity of goods. C. change in the price level. D. non-market production.
Our most important trading partner is _____________.
Fill in the blank(s) with the appropriate word(s).