If Output in the Calculator Market Increases by 5 Percent

question 18

Multiple Choice

If output in the calculator market increases by 5 percent when the price increases by more than 5 percent, then

• A)supply is inelastic
• B)supply is elastic
• C)a small increase in price will cause a leftward shift of the supply curve
• D)a small increase in price will cause a rightward shift of the supply curve
• E)a large increase in price will cause a large shift of the supply curve