If the Price Elasticity of Supply Is 0

question 257

Multiple Choice

If the price elasticity of supply is 0.2,and a price increase led to a 3% increase in quantity supplied,then the price increase is about

• A) 0.07%.
• B) 0.60%.
• C) 6%.
• D) 15%.

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Self-Censorship

The act of withholding one's thoughts, opinions, or feelings due to fear of social or official repercussions.

Illusion of Vulnerability

A cognitive bias where individuals underestimate their susceptibility to negative events.

Deindividuated

A psychological state characterized by reduced self-awareness and diminished social identity, often leading to disinhibited behavior.