The Price Elasticity of Supply of Laptop Computers Equals 1

question 128

Multiple Choice

The price elasticity of supply of laptop computers equals 1.5 if

• A) a rightward shift of the demand curve for laptops causes the quantity supplied to increase by 1.5 percent.
• B) a rightward shift of the demand curve for laptops causes a 1.5 percent increase in their price.
• C) for every 1 percent that laptop prices increase, computer makers produce another 1.5 percent laptops.
• D) for every $1.00 that laptops increase in price, computer makers produce another 150 laptops.