Suppose When the Price of Novels Goes from $15 to $20

question 79

Multiple Choice

Suppose when the price of novels goes from $15 to $20 per book,production increases from 760 million books to 840 million books per year.Using the mid-point method,the price elasticity of supply is:

• A) 0.77
• B) 28.5 percent
• C) 37 percent
• D) 0.35

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