If Price Increases from $45 to $55, the Market Quantity

question 75

Multiple Choice

If price increases from $45 to $55, the market quantity supplied increases from 20 units per week to 30 units per week.The price elasticity of supply is

• A)1/2 = 0.5
• B)1.0
• C)11/6 = 1.8333
• D)9/4 = 2.25
• E)2.0

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Definitions:

Controlling Influence

The power to direct the financial and operating policies of another entity so as to obtain benefits from its activities.

Investee

A company or entity in which an investor holds a minority ownership, typically less than 50%.

Voting Stock

Shares that give the shareholder voting rights in a company's decisions.

Net Income

A company's final profit after deducting all expenses and taxes from its total revenue.