If the Elasticity of Supply Is 4, a 10 Percent

question 305

Multiple Choice

If the elasticity of supply is 4, a 10 percent increase in the price of a good leads to a

• A) 40 percent increase in the quantity of supply.
• B) 4 percent decrease in the quantity demanded.
• C) 2.5 percent increase in the quantity supplied.
• D) 2.5 percent decrease in the quantity demanded.

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Definitions:

Packet Switching

A method of grouping data transmitted over a digital network into packets, which are then routed independently to the destination, allowing for efficient use of network resources.

16-Bit Numbers

Numerical values represented using 16 binary digits, allowing for a range of values from 0 to 65,535 in unsigned form or −32,768 to 32,767 in signed form.

IPv4

Internet Protocol version 4, a core protocol for the internet that provides an identification and location system for computers on networks and routes traffic across the internet.

E-Mail

Internet-based communication in which senders and recipients correspond.