If a Rise in the Price of Good a from $100

question 165

Multiple Choice

If a rise in the price of good A from $100 to $120 results in an increase in quantity supplied from 10,000 to 12,000 units, then the elasticity of supply is

• A)0.625.
• B)0.8.
• C)1.25.
• D)0.2.
• E)1.0.

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Definitions:

Usurious Interest

Exorbitantly high interest rates, often exceeding legal or ethically acceptable limits.

Unconscionable

Refers to actions or terms that are excessively unjust or unreasonable, often to a degree that they violate fairness or ethics.

Supply

The sum of a product or service that can be bought at a specific price.

Land

The surface of the earth and its natural resources, considered a fundamental factor of production in economics.