If the Price of Cocoa Rises by 10 Percent and the Elasticity

question 68

Multiple Choice

If the price of cocoa rises by 10 percent and the elasticity of supply is 0.5, then the quantity supplied:

• A) increases by 5 percent.
• B) increases by 20 percent.
• C) decreases by 5 percent.
• D) decreases by 20 percent.

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Definitions:

Tank Pop-Off Valve

A safety valve on a tank (such as an air compressor or pressure vessel) that releases pressure to prevent over-pressurization.

Rupture Disk

A safety device designed to burst at a predetermined pressure to relieve excessive pressure from vessels or piping systems.

Hubdometer

A wheel hub located odometer used to track and display mileage; especially useful on trailers to schedule service intervals.

Trailer Mileage

The distance that a trailer has traveled or is capable of traveling, often used as a measure of its usage or lifespan.