Suppose the Price Elasticity of Supply for Candles Is 0

question 287

Multiple Choice

Suppose the price elasticity of supply for candles is 0.3 in the short run and 1.2 in the long run.If an increase in the demand for candles causes the price of candles to increase by 36%,then the quantity supplied of candles will increase by about

• A) 0.8% in the short run and 3.3% in the long run.
• B) 1.2% in the short run and 0.3% in the long run.
• C) 10.8% in the short run and 43.2% in the long run.
• D) 120% in the short run and 30% in the long run.

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Definitions:

Case Studies

Detailed examinations of a single subject or group, often used in psychology to explore complex issues or conditions.

Biological Instincts

Innate, typically fixed patterns of behavior in animals in response to certain stimuli.

Creative Solutions

Innovative and effective ways to solve problems or address challenges, often involving novel approaches or thinking outside conventional parameters.

Unconscious

The unconscious consists of processes in the mind that occur automatically and are not available to introspection, including desires, feelings, and motivations.