Suppose When the Price of Jean-Jackets Increased by 10 Percent

question 165

Multiple Choice

Suppose when the price of jean-jackets increased by 10 percent, the quantity supplied increased by 16 percent.Based on this information the price elasticity of supply of jean-jackets is

• A)0.625.
• B)6%.
• C)1.6.
• D)1.6%.

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Definitions:

Contribution Format

An income statement format that separates fixed costs from variable costs to highlight the contribution margin.

Target Profit

The expected profit levels set by management for a specific period, guiding pricing and sales strategies.

Income Statement

An account documenting an organization's economic activity, showing income, outlays, and net gains or deficits over a distinct timeframe.

Net Operating Income

This refers to a company's income after all operating expenses, but before interest and taxes, are subtracted from total revenue.