Suppose That When the Price of Shoe Laces Goes from $1

question 118

Multiple Choice

Suppose that when the price of shoe laces goes from $1 to $2 per pair,production increases from 90 million pairs per year to 100 million pairs.Using the mid-point method,the price elasticity of supply would be:

• A)6.28.
• B)66 percent.
• C)10.5 percent.
• D)0.16.

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