If the Price Elasticity of Supply Is 1

question 79

Multiple Choice

If the price elasticity of supply is 1.2,and a price increase led to a 5% increase in quantity supplied,then the price increase is about

• A)0.24%.
• B)4.2%.
• C)6%.
• D)6.2%.

---

Definitions:

Differentiation

Differentiation is a strategy or process in which a business distinguishes its product or service from that of its competitors, typically through quality, design, or features.

Division of Labour

The process of splitting work into distinct tasks, each performed by different workers or groups of workers, to improve efficiency.

Integration

implies the process of combining or incorporating parts into a whole, often to achieve a more unified or harmonious outcome.

Functional Departmentation

The process of grouping activities into departments based on similar functions or expertise, such as marketing or finance, within an organization.