If a 15% Change in Price Results in a 20

question 34

Multiple Choice

If a 15% change in price results in a 20% change in quantity supplied,then the price elasticity of supply is about

• A)1.33,and supply is elastic.
• B)1.33,and supply is inelastic.
• C)0.75,and supply is elastic.
• D)0.75,and supply is inelastic.

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Definitions:

Legal Permissibility

The extent to which an action or procedure is allowed within the bounds of the law.

Court Precedent

A legal decision made by a court that serves as an example or rule to be followed in future similar cases.

Insurance

A financial agreement where individuals or entities receive protection or reimbursement against losses from an insurer, in exchange for premium payments.

Exculpatory Clause

A contract term that releases one party from liability for harm or damage that might occur to another party, often found in service agreements and waivers.