Suppose That the Price Elasticity of Supply Is One and the Quantity

question 170

Multiple Choice

Suppose that the price elasticity of supply is one and the quantity supplied increases by 5%. Other things being equal, the percentage change in the price should be

• A) a 0.5% increase in the price.
• B) a 5% increase in the price.
• C) a 0.2% increase in the price.
• D) a 2% increase in the price.

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Definitions:

Administrator

A person appointed by a court to manage and distribute the estate of a deceased person without a will.

Dissenting Opinion

A rephrased definition: An alternative opinion issued by a judge who disagrees with the majority's conclusion in a legal case.

Judge

An official appointed to decide cases in a court of law and to administer justice according to the law.

Majority

More than half of a given group or quantity; often used to describe the age at which a person is legally acknowledged as an adult.