If the Price Elasticity of Supply Is 1

question 249

Multiple Choice

If the price elasticity of supply is 1.5,and a price increase led to a 3% increase in quantity supplied,then the price increase amounted to

• A) 0.2%.
• B) 0.5%.
• C) 2%.
• D) 4.5%.

Understand the concepts of preparedness and its role in the development of certain phobias.

Acknowledge the complexities and controversies surrounding the etiology of dissociative identity disorder.

Understand the characteristics and symptoms of various psychological disorders.

Identify factors related to the development and maintenance of psychological disorders.

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Definitions:

Market Efficiency

Market efficiency is a concept where all available information is already reflected in asset prices, implying that assets are priced perfectly and it is impossible to "beat the market" through expert stock selection or market timing.

Microsoft Stock

The shares of Microsoft Corporation, representing ownership in the company, traded on the stock market.

Strong Form

A hypothesis suggesting that market prices fully reflect all information, both public and private, implying no one can consistently achieve higher returns.

Market Efficiency

A concept that describes how well prices in financial markets reflect all available and relevant information.