Holding All Other Factors Constant and Using the Midpoint Method,if

question 21

Multiple Choice

Holding all other factors constant and using the midpoint method,if a candy manufacturer increases production by 20 percent when the market price of candy increases from $0.50 to $0.60,then supply is

• A)inelastic,since the price elasticity of supply is equal to .91.
• B)inelastic,since the price elasticity of supply is equal to 1.1.
• C)elastic,since the price elasticity of supply is equal to 0.91.
• D)elastic,since the price elasticity of supply is equal to 1.1.

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Definitions:

Target Audience

A specific group of consumers at which a company or organization aims its products, services, or advertisements, based on factors like age, gender, interests, or location.

Persuade

The act of influencing someone's beliefs, attitudes, or behaviors through argument, reasoning, or appeal.

Attitude Formation

The process by which individuals develop their perspectives, feelings, and beliefs about people, objects, and ideas based on experiences, emotions, and information.

Direct Contact

A situation or method of transmission where physical touch or immediate proximity facilitates the exchange or spread of substances or information.