Suppose When the Price of Shoe Laces Goes from $1

question 33

Multiple Choice

Suppose when the price of shoe laces goes from $1 to $2 per pair, production increases from 95 million pairs to 105 million pairs per year. Using the mid-point method, what is the price elasticity of supply?

• A) 6.28
• B) 0.66
• C) 0.11
• D) 0.15

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Definitions:

Hemiacetal

A functional group formed by the reaction of an aldehyde with an alcohol, consisting of a carbon atom bonded to an OH and an OR group.

Carbonyl Group

A functional group found in organic compounds, consisting of a carbon atom double-bonded to an oxygen atom (C=O), characteristic of ketones, aldehydes, carboxylic acids, and esters.

Methylene Group

A bivalent functional group (-CH2-) consisting of a carbon atom bonded to two hydrogen atoms.

LiAlH[OC(CH3)2]3

A chemical compound used as a reducing agent in organic synthesis, often referred to as Lithium Aluminium Hydride.