If the Price Doubles and the Quantity Supplied Also Doubles,the

question 305

Multiple Choice

If the price doubles and the quantity supplied also doubles,the price elasticity of supply for the good is

• A) -1.
• B) 1.
• C) -2.
• D) 2.
• E) 100 percent.

---

Definitions:

Average Total Costs

The total costs of production divided by the number of units produced, representing the cost per unit.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as output varies.

Demand Curve

A graph that represents the relationship between the price of a good and the quantity demanded by consumers at various price levels.

Easy Entry And Exit

A characteristic of competitive markets where there are minimal barriers for new firms to enter or exit the market.