Suppose When the Price of Cupcakes Goes from $2 to $3

question 104

Multiple Choice

Suppose when the price of cupcakes goes from $2 to $3 per cupcake, production increases from 350,000 cupcakes to 450,000 cupcakes per year. Using the mid-point method, what is the price elasticity of supply?

• A) 1.6
• B) 0.4
• C) 0.25
• D) 0.63

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Definitions:

Adrenal Glands

Small, triangular-shaped glands located on top of both kidneys that produce hormones such as adrenaline and cortisol involved in stress and metabolic responses.

Endocrine

Relating to glands that secrete hormones directly into the blood rather than through a duct.

Exocrine

Pertains to glands that secrete their products through ducts directly into the external environment or onto body surfaces.

Endocrine Glands

Glands of the endocrine system that release hormones directly into the bloodstream.