Suppose That in a Month the Price of a Liter

question 238

Multiple Choice

Suppose that in a month the price of a liter of soda increases from $1 to $1.50. At the same time, the quantity of liters of soda supplied increases from 200 to 210. The price elasticity of supply for liters of soda calculated using the initial value formula) is:

• A)negative.
• B)inelastic.
• C)unitary elastic.
• D)elastic.

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Definitions:

States

States are distinct political entities with a defined territory, population, and government, which are part of a larger sovereign country or function independently.

Presume

To accept something as true without proof or before evidence is provided.

Dormant Commerce Clause

A restriction on states’ authority that is implied in the commerce clause of the U.S. Constitution: The power given to Congress to enact legislation that affects interstate commerce in effect prohibits a state from passing legislation that improperly burdens interstate commerce.

Interstate Commerce

Interstate Commerce refers to the buying, selling, or moving of goods, services, or money across state borders, regulated by the federal government.