Suppose the Price Elasticity of Supply for Candles Is 0

question 287

Multiple Choice

Suppose the price elasticity of supply for candles is 0.3 in the short run and 1.2 in the long run.If an increase in the demand for candles causes the price of candles to increase by 36%,then the quantity supplied of candles will increase by about

• A) 0.8% in the short run and 3.3% in the long run.
• B) 1.2% in the short run and 0.3% in the long run.
• C) 10.8% in the short run and 43.2% in the long run.
• D) 120% in the short run and 30% in the long run.

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