Suppose That After a Five Per Cent Increase in the Price

question 147

Multiple Choice

Suppose that after a five per cent increase in the price of timber, a forestry company increases its supply of timber by 10 per cent in the next three months, and 15 per cent by 12 months.This means that the elasticity of supply is _____.

• A)3 at three months and 2 at 12 months
• B)0.5 at three months and 0.3 at 12 months
• C)2 at three months and 3 at 12 months
• D)0.3 at three months and 0.5 at 12 months

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Definitions:

External World

The reality existing outside an individual's mind, perceived through the senses.

Aristophanes

Aristophanes was an ancient Greek playwright known for his comic plays, which critically examined social, political, and cultural topics of Athens.

Completion

The state or condition of being completed, where all required or planned parts, elements, or steps have been accomplished or fulfilled.

Other Half

Often refers to a concept in Platonic philosophy where each soul is divided and seeks its counterpart to become whole.