Scenario 5-3 Suppose That the Supply of Aged Cheddar Cheese Is Inelastic,and

question 38

Multiple Choice

Scenario 5-3
Suppose that the supply of aged cheddar cheese is inelastic,and the supply of bread is elastic.Both goods are considered to be normal goods by a majority of consumers.Suppose that a large income tax increase decreases the demand for both goods by 10%.
-Refer to Scenario 5-3.The price elasticity of supply for aged cheddar cheese could be

• A)-1.
• B)0.
• C)0.5.
• D)1.5.

---

Definitions:

Low-Involvement Purchase

Buying decisions made by consumers involving minimal research and consideration because the product is inexpensive or perceived as having little risk.

Problem-Solving Processes

Methods or approaches used to identify solutions to specific issues, often involving steps such as identifying the problem, generating alternatives, and selecting a solution.

Costume Jewelry

Jewelry made from non-precious materials intended for fashion and decorative purposes rather than as an investment or luxury item.

New Cars

Vehicles that have never been previously owned or used, offering the latest technology, features, and warranties directly from the manufacturer or dealership.