Suppose That an Increase in the Price of Melons from $1.30

question 76

Multiple Choice

Suppose that an increase in the price of melons from $1.30 to $1.80 per pound increases the quantity of melons that melon farmers produce from 1.2 million pounds to 1.6 million pounds.Using the midpoint method,what is the approximate value of the price elasticity of supply?

• A)0.67
• B)0.89
• C)1.00
• D)1.13

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Definitions:

Good Faith Purchaser

is a person who buys property without notice of any other party's claim to the title of the property and for a fair value.

Consequential Damages

Losses that arise not directly from a breach of contract but as a foreseeable result of the breach.

Monetary Damages

Compensation awarded in the form of money to a person who has suffered loss or injury as a result of the wrongful act of another.

Liquidated Damage Clause

A provision in a contract specifying a predetermined amount of damages to be paid if one party breaches the agreement.