If the quantity supplied of candy increases by 10% when the price of candy increases by 20%, which of the following is TRUE?
A) Supply for candy is elastic, and price elasticity of supply = 2.0.
B) Supply for candy is inelastic, and price elasticity of supply = 2.0.
C) Supply for candy is elastic, and price elasticity of supply = 0.5.
D) Supply for candy is inelastic, and price elasticity of supply = 0.5.
D
You might also like to view...
An increase in the interest rate in the United States compared to the interest rate in Great Britain will
A) increase the U.S. interest rate differential. B) increase the demand for pounds. C) shift the demand curve for dollars rightward. D) Both answers A and C are correct.
A tariff is a tax on ________________.
Fill in the blank(s) with the appropriate word(s).
Gold, silver, and cigarettes in a prisoner of war are all examples of commodity money.
Answer the following statement true (T) or false (F)
Analysis of U.S. budget deficits in the United States between 1990 and 2000 indicates that which of the following is primarily responsible for the reduction in the budget deficit?
A) decrease in spending B) increase in tax revenues C) decrease in spending and increase in tax revenues D) lower interest rates E) increases in tax rates