Suppose the Price Elasticity of Supply for Cheese Is 0

question 16

Multiple Choice

Suppose the price elasticity of supply for cheese is 0.6 in the short run and 1.4 in the long run.If an increase in the demand for cheese causes the price of cheese to increase by 15%,then the quantity supplied of cheese will increase by

• A)0.4% in the short run and 4.6% in the long run.
• B)1.7% in the short run and 0.7% in the long run.
• C)9% in the short run and 21% in the long run.
• D)25% in the short run and 10.7% in the long run.

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Definitions:

Skinner--operant Conditioning

An adaptation process in learning where the level of a behavior's intensity is recalibrated through reward systems or disciplinary actions.

Pavlov--classical Conditioning

A learning process discovered by Ivan Pavlov that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Piaget--cognitive Development

The theory proposed by Jean Piaget that describes how children develop logical thinking through a series of stages.

Retrieval Cues

Stimuli or signals that can trigger the recall of information from memory.