If a 20% Change in Price Results in a 15

question 503

Multiple Choice

If a 20% change in price results in a 15% change in quantity supplied, then the price elasticity of supply is about

• A) 1.33, and supply is elastic.
• B) 1.33, and supply is inelastic.
• C) 0.75, and supply is elastic.
• D) 0.75, and supply is inelastid.

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Definitions:

Warranty Of Merchantability

A legal guarantee that a product sold by a merchant fits its ordinary purposes and meets the buyer’s expectations.

Breach

The violation or non-fulfillment of a legal obligation, agreement, or law.

Magnuson-Moss Act

A federal law in the United States that governs warranties on consumer products, aiming to protect consumers against deceptive warranty practices.

UCC

Uniform Commercial Code; a comprehensive set of laws governing all commercial transactions in the United States.