If a Small Percentage Increase in the Price of a Good

question 132

Multiple Choice

If a small percentage increase in the price of a good results in a rather large percentage increase in the quantity supplied of the good, supply is said to be

• A) vertical.
• B) relatively inelastic.
• C) relatively elastic.
• D) robust.

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Definitions:

Price of a Service

The amount of money charged for the performance of a specific task or service provided to consumers or businesses.

Tuition

The fee charged for instruction or teaching, typically in a formal educational institution.

Seven Ps

An extended marketing mix model that includes Product, Price, Place, Promotion, People, Process, and Physical evidence as its components.

Profitability

The ability of a company to generate earnings compared to its expenses and other relevant costs incurred during a specific period.