The Following Data Relate to the Supply Schedule of a Product

question 61

Multiple Choice

The following data relate to the supply schedule of a product. Over which price range is the elasticity of supply greater than 1?

• A) $10 to $15
• B) $15 to $20
• C) $20 to $25
• D) $25 to $30 Over the price range $25 to $30,the change in quantity is (350 - 500)/(300 + 500)= 0.188 and the change in price is (25 - 30)/(25 + 30)= 0.091.Thus,elasticity is 0.188/0.091 = 2.07,which is greater than1.

---

Definitions:

Chronic

A condition persisting for a long time or constantly recurring.

Athletes

Individuals who participate in competitive physical activities requiring skill or physical prowess.

Body Mass Index

A measure of body fat based on height and weight that applies to adult men and women.

Obese

A medical condition in which excess body fat has accumulated to the extent that it may have a negative effect on health, often defined by body mass index.