The quantity supplied of bagels is 100 at the unit price $1. Suppose the price elasticity of supply by the initial value method is 1.5, and you would like to induce sellers to increase the quantity of bagels supplied to 130. Then the new price for bagels must be:

A. $11.
B. $10.20.
C. $1.20.
D. $1.10.


Answer: C

Economics

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