The Inputs Used to Produce Cupcakes (E

question 133

Multiple Choice

The inputs used to produce cupcakes (e.g., flour, sugar, butter, and labor) are also used to produce cookies, cakes, muffins, pies and many other goods. This suggests that:

• A)the supply curve for cupcakes is downward sloping.
• B)the elasticity of supply of cupcakes is relatively high.
• C)the elasticity of supply of cupcakes is relatively low.
• D)cupcakes are a normal good.

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Definitions:

Probability Assignment

The process of attributing a numerical likelihood to the occurrence of an event.

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Conforming to the law or to rules; authentic or genuine.

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The process of assigning a likelihood to a set of outcomes in an experiment or event.