If the Price Elasticity of Supply Is 1

question 55

Multiple Choice

If the price elasticity of supply is 1.5,and a price increase led to a 3% increase in quantity supplied,then the price increase is about

• A)0.2%.
• B)0.5%.
• C)2.0%.
• D)4.5%.

---

Definitions:

Concurrent

Occurring or existing simultaneously or side by side.

Feedforward

A communication process that focuses on providing future-oriented feedback or information to guide actions and improve outcomes before tasks are executed.

Internal Auditing

An objective assurance and consulting activity designed to add value and improve an organization's operations, focusing on internal control effectiveness and risk management.

Accounting Manager

A professional role responsible for overseeing accounting and financial tasks within an organization, such as maintaining financial records, preparing reports, and ensuring compliance with laws and regulations.