In January the Price of Widgets Was $2

question 286

Multiple Choice

In January the price of widgets was $2.00,and Wendy's Widgets produced 80 widgets.In February the price of widgets was $2.50,and Wendy's Widgets produced 110 widgets.In March the price of widgets was $3.00,and Wendy's Widgets produced 140 widgets.The price elasticity of supply of Wendy's Widgets was

• A) 0.70 when the price increased from $2.00 to $2.50 and 0.76 when the price increased from $2.50 to $3.00.
• B) 0.88 when the price increased from $2.00 to $2.50 and 1.08 when the price increased from $2.50 to $3.00.
• C) 1.42 when the price increased from $2.00 to $2.50 and 1.32 when the price increased from $2.50 to $3.00.
• D) 1.50 when the price increased from $2.00 to $2.50 and 1.18 when the price increased from $2.50 to $3.00.

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Definitions:

Intersection

In mathematics, the set containing all elements that are common to two or more sets.

Multiplication Law

A probability rule that states the probability of two events occurring together is the product of the probabilities of the events happening independently.

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The practice of artificially inflating or deflating the price of stocks through misleading statements, rumors, or trades, often used to achieve profits at the expense of regular investors.

Excessive Compensation

The term refers to inordinately high payments or salaries, often discussed in the context of corporate executives and the potential impact on business ethics and inequality.