Holding All Other Factors Constant and Using the Midpoint Method,if

question 369

Multiple Choice

Holding all other factors constant and using the midpoint method,if a calculator manufacturer increases production from 40 to 50 units when price increases by 20 percent,then supply is

• A) inelastic, since the price elasticity of supply is equal to .91.
• B) inelastic, since the price elasticity of supply is equal to 1.1.
• C) elastic, since the price elasticity of supply is equal to 0.91.
• D) elastic, since the price elasticity of supply is equal to 1.1.

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Definitions:

Title

Title refers to the legal right to own something, especially land or property, evidenced by a document recorded by a public office.

Corporate Property

Assets owned by a corporation, including physical goods, intellectual property, and financial assets.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thus having a financial stake and certain rights in the company.

RMBCA

The Revised Model Business Corporation Act (RMBCA) is a set of model laws prepared by the American Bar Association to provide a standard for the governance of corporations.