If a 10 Percent Increase in Price Increases the Quantity

question 89

Multiple Choice

If a 10 percent increase in price increases the quantity supplied by 18 percent,the elasticity of supply is

• A)0.3.
• B)0.6.
• C)1.2.
• D)1.8.
• E)9.0.

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Definitions:

Efficient Markets Hypothesis

A theory suggesting that all known information is already reflected in stock prices, meaning that stocks always trade at their fair value.

Stock Price

The current price at which a share of a company is bought or sold in the market.

Financial Disclosures

Information provided by a company to its stakeholders about its financial health, performance, and risks, typically found in annual reports and financial statements.

Economic Incentive

A financial or non-financial reward offered to encourage or discourage specific behaviors or actions by individuals or companies.