If the Quantity Supplied of Candy Increases by 10% When

question 303

Multiple Choice

If the quantity supplied of candy increases by 10% when the price of candy increases by 20%, which of the following is true?

• A) Supply for candy is elastic, and price elasticity of supply = 2.0.
• B) Supply for candy is inelastic, and price elasticity of supply = 2.0.
• C) Supply for candy is elastic, and price elasticity of supply = 0.5.
• D) Supply for candy is inelastic, and price elasticity of supply = 0.5.

---

Definitions:

Irrational Thinking

Thought processes characterized by illogical or unreasonable conclusions or beliefs.

Negative Emotions

Feelings that are generally considered unpleasant or undesirable, such as sadness, anger, and fear.

Scientist-Practitioner Gap

The divide between academic research in psychology and its application in clinical practice, often due to differences in goals, methods, and priorities.

Rational-Emotive Behavior Therapy

A form of psychotherapy that helps individuals identify irrational beliefs and negative thought patterns in order to change their emotional responses.