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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