If a Small Percentage Increase in the Price of a Good

question 132

Multiple Choice

If a small percentage increase in the price of a good results in a rather large percentage increase in the quantity supplied of the good, supply is said to be

• A) vertical.
• B) relatively inelastic.
• C) relatively elastic.
• D) robust.

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Definitions:

Formulas

Predefined mathematical equations used to calculate values based on input data, widely used in disciplines such as finance, physics, and chemistry.

Royalty

Money that employees or others receive based on sales, for example an author or musician.

Percentage

A mathematical concept that represents a portion of 100, used in describing proportions and rates in various contexts.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service.