Suppose the Price Elasticity of Supply for Soccer Balls Is

question 63

Multiple Choice

Suppose the price elasticity of supply for soccer balls is 0.3 in the short run and 1.2 in the long run.If an increase in the demand for soccer balls causes the price of soccer balls to increase by 20%,then the quantity supplied of soccer balls will increase by about

• 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:

Education

The process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various methods such as teaching, training, and research.

Capital Flight

The swift transfer of substantial amounts of money or assets from one country due to economic or political unrest.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, indicating improvements in living standards and economic health.

Import Substitution

An economic policy aimed at reducing dependency on imported goods by encouraging the domestic production of these goods.