Supply Is Elastic If

question 49

Multiple Choice

Supply is elastic if

• A) the slope of the supply curve is positive.
• B) the good in question is a normal good.
• C) a 1 per cent change in price leads to a larger percentage change in quantity supplied.
• D) a 1 per cent change in price leads to a smaller percentage change in quantity supplied.

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Definitions:

Spring

A season of the year following winter and preceding summer, characterized by rising temperatures and the budding of plants.

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The act of legally canceling a contract, returning all parties to their positions prior to the agreement.

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A situation where a person is wrongly believed or judged without intentional fault.

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A vehicle that has been previously owned and operated, and is available for purchase in the secondary market.