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:

Ghrelin Production

The process by which the stomach produces the hormone ghrelin, which stimulates appetite and signals the body to eat.

Leptin Levels

A measure of the hormone leptin, which is produced by fat cells and is involved in regulating appetite and energy balance.

PYY

A hormone involved in appetite regulation, produced in the gut in response to eating.

Leptin

A hormone produced by fat cells that helps to regulate body weight by inhibiting hunger, thus acting as an appetite suppressant.