At Price of $1

question 71

Multiple Choice

At price of $1.30 per pound,a local apple orchard is willing to supply 150 pounds of apples per day.At a price of $1.50 per pound,the orchard is willing to supply 170 pounds of apples per day.Using the midpoint method,the price elasticity of supply is about

• A)1.14.
• B)1.00.
• C)0.875.
• D)0.50.

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Definitions:

Demand Shift

A change in the quantity of a product or service that consumers are willing and able to buy, due to factors such as price, consumer preferences, or income changes.

Equilibrium Price

the price at which the quantity of goods supplied equals the quantity of goods demanded, reaching a state of market balance.

Demand Increase

A situation where the desire and willingness to purchase a good or service grows, often resulting in higher prices.

Supply Decrease

A reduction in the quantity of a product or service that is available for sale.