In January,the Price of Widgets Was $2

question 2

Multiple Choice

In January,the price of widgets was $2.00 and Wendy's Widgets produced 100 widgets.In February,the price of widgets was $2.50 and Wendy's Widgets produced 150 widgets.In March,the price of widgets was $3.00 and Wendy's Widgets produced 200 widgets.What is the price elasticity of supply of Wendy's Widgets

• A)0.56 when the price increased from $2.00 to $2.50 and 0.64 when the price increased from $2.50 to $3.00
• B)1.66 when the price increased from $2.00 to $2.50 and 1.50 when the price increased from $2.50 to $3.00
• C)1.80 when the price increased from $2.00 to $2.50 and 1.57 when the price increased from $2.50 to $3.00
• D)2.00 when the price increased from $2.00 to $2.50 and 1.66 when the price increased from $2.50 to $3.00

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Definitions:

Primary Activity

In business, it refers to the core activities that are central to the operations of a company, directly related to the creation and delivery of its products or services.

Human Resource Management

The strategic approach to the effective management of people in a company or organization, aiming to help the business gain a competitive advantage.

Procurement

Involves the strategic acquisition of necessary goods and services for organizational operations, emphasizing cost-effectiveness and efficiency.

Substitute Products

Goods or services that can serve as replacements for each other; when the price of one goes up, the demand for the other might increase.