Suppose the Value of the Price Elasticity of Supply Is

question 160

Multiple Choice

Suppose the value of the price elasticity of supply is 4.What does this mean?

• A)A 4 percent increase in the price of the good causes quantity supplied to increase by 1 percent.
• B)A 1 percent increase in the price of the good causes the supply curve to shift upward by 4 percent.
• C)A 1 percent increase in the price of the good causes quantity supplied to increase by 4 percent.
• D)For every $1 increase in price, quantity supplied increases by 4 units.

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Definitions:

Expand

To increase in size, volume, quantity, or scope; in business, it often refers to growth strategies through opening new locations, markets, or product lines.

Constitutional

Relating to an established set of principles governing a state or other organization.

Salaries

refer to a fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.

Smoot-Hawley Tariff

A 1930 U.S. law that raised tariffs on thousands of imported goods, contributing to the Great Depression.