In January the Price of Widgets Was $1

question 12

Multiple Choice

In January the price of widgets was $1.00,and Wendy's Widgets produced 80 widgets.In February the price of widgets was $1.50,and Wendy's Widgets produced 110 widgets.In March the price of widgets was $2.00,and Wendy's Widgets produced 140 widgets.The price elasticity of supply of Wendy's Widgets was about

• A)0.79 when the price increased from $1.00 to $1.50 and 0.84 when the price increased from $1.50 to $2.00.
• B)1.27 when the price increased from $1.00 to $1.50 and 1.19 when the price increased from $1.50 to $2.00.
• C)0.79 when the price increased from $1.00 to $1.50 and 1.19 when the price increased from $1.50 to $2.00.
• D)1.27 when the price increased from $1.00 to $1.50 and 0.84 when the price increased from $1.50 to $2.00.

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Definitions:

Curve

A graphical representation showing the relationship between two or more variables on a coordinate plane.

Positively Related

A relationship between two variables where an increase in one variable is associated with an increase in the other.

Value

The importance, worth, or usefulness of something, often determined by its desirability and utility.

Up

A direction or trend indicative of progress, increase, or improvement.