At a Price of $4 Per Unit, Gadgets Inc

question 144

Multiple Choice

At a price of $4 per unit, Gadgets Inc.is willing to supply 20,000 gadgets, while United Gadgets is willing to supply 10,000 gadgets.If the price were to rise to $8 per unit, their respective quantities supplied would rise to 45,000 and 25,000.If these are the only two firms supplying gadgets, what is the elasticity of supply in the market for gadgets?

• A)1.2
• B)1.0
• C).833
• D).80

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Definitions:

Product Strategies

The planning and execution of decisions related to a company's product mix, development, branding, and positioning to meet customer needs and achieve competitive advantage.

Promotion Strategies

Tactics employed by businesses to inform, persuade, and remind customers about products or services to influence their purchasing decisions.

Dumping

The practice of exporting goods to another country at prices lower than the home market price, often considered unfair competition and subject to anti-dumping measures.

Parallel Importing

The importation of legally produced goods without the permission of the intellectual property owner, usually to exploit price differences between markets.