When Price Rises from $1

question 67

Multiple Choice

When price rises from $1.50 to $2.50, quantity supplied increases from 9,000 to 11,000 units. What is the price elasticity of supply?

• A)0.4
• B)0.8
• C)2.5
• D)4.0
• E)-0.4

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Definitions:

Theory Y

A management theory which suggests that employees are naturally motivated, enjoy working, and will exhibit self-control and self-direction if they are committed to the objectives of the organization.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving aspects of logic, emotions, and values.

Union Avoidance Strategy

Tactics employed by employers to prevent the formation of unions within their organizations or to minimize union influence.