An Increase in the Price of Cheese Crackers from $2

question 52

Multiple Choice

An increase in the price of cheese crackers from $2.25 to $2.45 per box causes suppliers of cheese crackers to increase their quantity supplied from 125 boxes per minute to 145 boxes per minute.Using the midpoint method,supply is

• A)elastic,and the price elasticity of supply is 1.74.
• B)elastic,and the price elasticity of supply is 0.57.
• C)inelastic,and the price elasticity of supply is 1.74.
• D)inelastic,and the price elasticity of supply is 0.57.

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Definitions:

Globalization

Refers to the process of interaction and integration among people, companies, and governments worldwide, leading to the exchange of ideas, products, and cultures.

Diversification

Diversification is the strategy of entering into new markets or creating new products to spread risk and reduce dependence on a single source of income or success.

Command Economy

An economic system wherein the government or central authority makes all decisions regarding the production and distribution of goods and services.

Global South

A term referring to countries primarily located in the Southern Hemisphere, often focusing on regions in Africa, Latin America, Asia, and the Middle East, highlighting developmental and economic disparities.