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:

Economic Status

The standing or position of an individual or group based on income, wealth, employment, and other indicators of financial stability or prosperity.

Closely Linked

Having a very strong relationship or connection between two or more things.

Doctrine

A belief or set of beliefs held and taught by a church, political party, or other group.

Violent Methods

Approaches or actions that involve physical force intended to hurt, damage, or kill someone or something.