Suppose That the Price Elasticity of Supply of Lawn Mowers

question 43

Multiple Choice

Suppose that the price elasticity of supply of lawn mowers is 1.5. If the price of lawn mowers rises 5 per cent, the quantity supplied of lawn mowers would

• A) decline 7.5 per cent.
• B) rise 7.5 per cent.
• C) rise 1.5 per cent.
• D) rise 0.3 per cent.