Suppose the Price of Laptop Computers Decreases from $550 to $500

question 71

Multiple Choice

Suppose the price of laptop computers decreases from $550 to $500 and the quantity supplied decreases from 15,000 to 12,000 per week.Using the initial-price method,the price elasticity of supply is

• A) 0.2.
• B) 1.2.
• C) 2.0.
• D) 2.2.

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Definitions:

U.S. Business Firms

Companies operating within the United States, engaged in commercial, industrial, or professional activities.

Commercialization

The process of bringing new products or services to market, including the stages of development, production, and marketing to achieve wide consumer adoption.

Invention

A new method, idea, product, or process developed from study and experimentation.

Technological Advance

The development and application of new technologies, leading to more efficient production processes, new products, or improved services.