If the Elasticity of Supply Is 4, a 10 Percent

question 305

Multiple Choice

If the elasticity of supply is 4, a 10 percent increase in the price of a good leads to a

• A) 40 percent increase in the quantity of supply.
• B) 4 percent decrease in the quantity demanded.
• C) 2.5 percent increase in the quantity supplied.
• D) 2.5 percent decrease in the quantity demanded.

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Definitions:

External Locus

Refers to the belief that external forces or factors beyond one's control determine life's events.

Internal Locus

A psychological concept referring to individuals who believe they have control over the outcomes of their actions and events in their lives.

Posttraumatic Stress

A psychological disorder that arises from being exposed to or seeing a horrifying incident, causing symptoms including intense fear, recurring dreams, and significant stress.

Self-Control

The aptitude to steer one's affective states, mental processes, and operative actions in the context of lures and spontaneous inclinations.