Consider the Market in the Graph Shown

question 143

Multiple Choice

Consider the market in the graph shown. Using the mid-point method, what is the price elasticity of supply when the price increases from $4 to $7?

• A) 1.13
• B) 0.4
• C) 0.45
• D) 0.89

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Definitions:

Manufacturer

An entity or enterprise that makes goods through a process involving raw materials, components, or assemblies, usually on a large scale with machinery.