If the Price Elasticity of Supply of Doodads Equals 0

question 99

Multiple Choice

If the price elasticity of supply of doodads equals 0.50 and the price rises by 3 percent, then the quantity supplied of doodads will rise by ____.

• A)0.50 percent.
• B)1.50 percent.
• C)6.00 percent.
• D)15 percent.

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Definitions:

Payments

Transactions involving the transfer of money or equivalent to another party in exchange for goods, services, or to fulfill a legal obligation.

Merchandise Inventory

Goods that a retailer or wholesaler purchases for resale to customers.

Ending Merchandise Inventory

The final stock value of goods being sold by a retail or wholesale company at the close of an accounting period.

Purchase Allowances

Reductions in the price paid by a buyer to a seller, due to minor defects or quality issues with the goods provided.