If Supply Is P = 5 + 5Q and P

question 56

Multiple Choice

If supply is P = 5 + 5Q and P = $20,the price elasticity of supply is

• A) 20.
• B) 10.
• C) 5.5.
• D) 1.33.
• E) 0.75.

---

Definitions:

Canadian Companies

Businesses that are registered, operated or have a significant presence in Canada.

Compounded Quarterly

A method of calculating interest in which the interest is compounded quarterly, being added to the principal amount four times annually.

Annual Rate of Inflation

the percent increase in the price level of goods and services across the economy over the course of a year.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, typically used to monitor inflation.