If the Price Elasticity of Supply Is 4, an Increase

question 115

Multiple Choice

If the price elasticity of supply is 4, an increase in the price of Good X by 5 percent:

• A) causes the quantity supplied of Good X to rise 20 percent.
• B) causes the quantity supplied of Good X to fall 20 percent.
• C) causes the quantity supplied of Good X to rise 1.25 percent.
• D) causes the quantity supplied of Good X to fall 1.25 percent.

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Definitions:

Controlling

The management function concerned with monitoring performance, comparing it with goals and standards, and taking corrective action as needed.

Means-Ends

A problem-solving technique that involves identifying the desired outcome (end) and finding the most efficient means to reach that outcome.

Subgroups

Smaller groups formed within a larger group, based on shared interests or characteristics.

Adequate Financing

Having sufficient funds or capital to cover the startup, operation, or expansion of a business.