A Cafeteria Is Willing to Produce 100 Cups of Coffee

question 374

Multiple Choice

A cafeteria is willing to produce 100 cups of coffee when the price is $1 and 150 cups of coffee when the price is $1.30, other things being equal. The price elasticity of supply of coffee is

• A) 1.53.
• B) 0.67.
• C) 0.10.
• D) 0.50.

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Definitions:

Exoskeletons

Hard outer structures that provide support and protection to the bodies of certain organisms like insects and crustaceans.

Sphincter

A ring-like muscle that controls the passage of substances through an opening in the body, such as the anus or esophagus.

Smooth Muscle

A type of muscle tissue which is not under conscious control, found in the walls of internal organs such as the stomach and intestines.