Suppose That the Percentage Change in Supply Is 20%, the Price

question 229

Multiple Choice

Suppose that the percentage change in supply is 20%, the price elasticity of supply is 2, and the percentage change in the equilibrium price is 4%. What is the price elasticity of demand?

• A) 0
• B) 1
• C) 2
• D) 3

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Definitions:

Drafted Percentage

The proportion of individuals selected from a larger group to serve, particularly in a military context.

Congressional Medal

Also known as the Congressional Gold Medal, it is one of the highest civilian awards in the United States, awarded by Congress as an expression of national appreciation for distinguished achievements and contributions.

Posthumously

Occurring or done after the death of the individual in question, often relating to the publication of works or the awarding of honors.

First World War

A global conflict that lasted from 1914 to 1918, involving many of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Central Powers.