Suppose That an Increase in the Price of Carrots from $1.50

question 162

Multiple Choice

Suppose that an increase in the price of carrots from $1.50 to $1.70 per kilogram raises the amount of carrots that carrot farmers produce from 1.2 million kilograms to 1.6 million kilograms.Using the midpoint method,what would be the elasticity of supply

• A)0.50
• B)0.54
• C)1.86
• D)2.28

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Definitions:

Operating Activities

Transactions and events related to the primary activities of a business, such as selling products or services, that affect the operational cash flow.

Cash Flow Statement

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.

Profit Margin

Profit Margin is a financial metric that measures the amount of profit a business makes per dollar of revenue, indicating efficiency in controlling costs.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.