If a 40% Change in Price Results in a 25

question 35

Multiple Choice

If a 40% change in price results in a 25% change in quantity supplied,then the price elasticity of supply is about

• A)0.63,and supply is elastic.
• B)0.63,and supply is inelastic.
• C)1.60,and supply is elastic.
• D)1.60,and supply is inelastic.

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Definitions:

Purple

A color that has historically been associated with royalty, nobility, and spirituality due to the rarity and cost of the purple dye which was traditionally made from sea snails.

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