If the Supply Curve for Orange Juice Is Estimated to Be

question 80

Multiple Choice

If the supply curve for orange juice is estimated to be Q = 40 + 2p,then

• A) supply is price elastic at all prices.
• B) supply is price inelastic at all prices.
• C) supply is elastic only at prices below 20.
• D) No general statements about price elasticity of supply can be made.

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Definitions:

Absolute Value

A number's distance from zero on the number line, without considering its direction; denoted by two vertical bars on either side of the number.

Second Quartile

Also known as the median; it splits the data set into two halves, with 50% of the data below it and 50% above it.

Relative Standing

A measure or ranking of a value or observation within the context of a larger set of data or population.

Observation

An act of recording the occurrence or existence of a specific entity or phenomenon.