Suppose when the price of novels goes from $15 to $20 per book, production increases from 760 million books to 840 million books per year. Using the mid-point method, the price elasticity of supply is
A. 0.77
B. 28.5 percent
C. 37 percent
D. 0.35
D. 0.35
You might also like to view...
If price support policy increases producer surplus more than reducing consumer surplus, then
A) the policy leads to a Pareto-superior allocation. B) the policy leads to an increase in social welfare. C) the policy improves the efficiency of society. D) None of above.
Taxes and subsidies can be used to correct market failure
Indicate whether the statement is true or false
A ban on leaded gasoline has reduced ____________ pollution.
Fill in the blank(s) with the appropriate word(s).
Which group is most likely to be adversely affected by the importation of foreign steel?
A. Domestic steelworkers. B. Foreign steel producers. C. Consumers of domestic automobiles for which steel is an input. D. Domestic automobile workers.