If the Elasticity of Supply of TV Sets Is Equal

question 171

Multiple Choice

If the elasticity of supply of TV sets is equal to 3, then a 10 percent increase in the price of a TV will

• A) increase the quantity supplied by 3.33 percent.
• B) increase the quantity supplied by 30.0 percent.
• C) increase the quantity supplied by 0.33 percent.
• D) decrease the quantity supplied by 30.0 percent.

---

Definitions:

Economic Downturn

A period of declining economic performance across an economy, characterized by reduced GDP, employment, and spending.

Adjustable Rate Mortgages

Home loans with interest rates that can change over time, often linked to a specific index or benchmark.

Foreclosure Rates

The percentage of properties undergoing the legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments.

Prime Borrowers

Individuals who are considered low-risk by lenders due to their excellent credit history and are thus likely to receive better loan terms.