If an Increase in Price from $1

question 185

Multiple Choice

If an increase in price from $1.20 to $2 per unit leads to an increase in quantity supplied from 20 to 100 units,

• A)demand is elastic
• B)demand is inelastic
• C)demand is unit elastic
• D)supply is elastic
• E)supply is inelastic

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Definitions:

Desirability

Desirability refers to the attractiveness or appeal of a good, service, or concept to consumers or participants, influencing their choice or preference.

Compensation

Refers to the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, especially a percentage of the money received from a total paid to the agent responsible for the business.

Human Capital

The total of competencies, wisdom, or intangible valuables of individuals that have the potential to yield financial value for the people, their places of employment, or their local area.