If the Elasticity of Supply Is 2

question 189

Multiple Choice

If the elasticity of supply is 2.0, what happens to quantity supplied following a 7 percent increase in price? Quantity supplied increases:

• A) 3.5 percent.
• B) 2.9 percent.
• C) 14 percent.
• D) 9 percent.

---

Definitions:

Plan of Reorganization

A legal document that outlines the process by which a distressed company will restructure its debts and operations to recover from financial hardship.

Chapter 13

A section of the United States Bankruptcy Code that allows individuals earning regular income to develop a plan to repay all or part of their debts.

Liquidated

Pertains to the conversion of assets into cash or the settlement of debts through the sale of assets.

U.S. District Courts

Federal courts in the United States that have jurisdiction over civil actions and criminal cases arising under the Constitution, laws, and treaties of the U.S.