The Quantity Supplied of Bagels Is 100 at the Unit

question 20

Multiple Choice

The quantity supplied of bagels is 100 at the unit price $1. Suppose the price elasticity of supply by the initial value method is 1.5, and you would like to induce sellers to increase the quantity of bagels supplied to 130. Then the new price for bagels must be

• A) $11.
• B) $10.20.
• C) $1.20.
• D) $1.10.

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Definitions:

Direct Selling

A sales strategy in which products are marketed directly to consumers, bypassing traditional retail locations.

Merchant Wholesalers

Businesses that buy goods in large quantities from manufacturers or importers and sell them to retailers or other businesses, but not to the general public.

Inventories

Quantities of goods a company holds for the purpose of sale or production, typically reported as a current asset on a balance sheet.

Nonstore Retailers

Businesses that sell products outside the traditional brick-and-mortar storefront, such as online, direct mail, or vending machines.