Suppose the Price Elasticity of Supply for How-To Books Is

question 259

Multiple Choice

Suppose the price elasticity of supply for how-to books is 0.3 in the short run and 1.2 in the long run.If an increase in the demand for how-to books causes the price of how-to books to increase by 20%,then the quantity supplied of how-to books will increase by

• A) 0.67% in the short run and 0.17% in the long run.
• B) 3% in the short run and 1.2% in the long run.
• C) 6% in the short run and 24% in the long run.
• D) 66.7% in the short run and 16.7% in the long run.

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Definitions:

Colonized

Refers to the process or state of being under the control or influence of a foreign power, often implying exploitation and cultural imposition.

Globalized

Referring to the process by which businesses, technologies, or cultural attributes spread worldwide, leading to increased interconnectedness and interdependence among nations.

Command Economy

An economy in which the state, rather than market forces, manages the production and distribution of goods.

Production

The process of creating goods or services using inputs like raw materials, labor, and technology, often resulting in the generation of value.