Suppose an Increase in Demand Causes the Price to Increase

question 152

Multiple Choice

Suppose an increase in demand causes the price to increase from $2 to $4 and the quantity to increase from 1,000 to 1,800.Using the midpoint method,the elasticity of supply equals

• A) 0.86.
• B) 1.17.
• C) 2.74.
• D) 0.68.
• E) None of the above answers is correct.

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