An 18 Percent Increase in the Price of a Small

question 487

Multiple Choice

An 18 percent increase in the price of a small car results in a 10 percent increase in the quantity supplied. The price elasticity of supply is equal to

• A) 1.80.
• B) 0.55.
• C) 0.75.
• D) 0.40.

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Definitions:

Newspapers

Periodical publications containing written information on current events, news, articles, and advertisements, often published on a daily or weekly basis.

Thinning The Assets

A process of selectively selling off or disposing of less productive, less profitable, or underutilized assets by a company to improve financial health or operational efficiency.

Holdback Money

Funds retained by one party in a transaction as a safeguard to ensure some form of compliance or completion by the other party.

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its standalone assets and liabilities, often attributed to the company's brand, customer base, and reputation.