An Increase in the Price of Pure Chocolate Morsels from $3.25

question 141

Multiple Choice

An increase in the price of pure chocolate morsels from $3.25 to $3.45 causes Nestle to increase production from 125 bags per minute to 145 bags per minute.What do we know about the elasticity of supply

• A)It is 0.40 and supply is elastic.
• B)It is 2.48 and supply is elastic.
• C)It is 0.40 and supply is inelastic.
• D)It is 2.48 and supply is inelastic.

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