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:

Amicus Curiae

A term meaning "friend of the court" where individuals or organizations not party to a case provide information or expertise to assist the court in its decision-making process.

Certiorari

A writ issued by a superior court directing the transfer of a case from a lower court for review.

Writ of Certiorari

A court order requesting the lower court to deliver its record in a case so that the higher court can review it.

Original Jurisdiction

The authority of a court to hear a case for the first time, as opposed to appellate jurisdiction, which reviews the decisions of lower courts.