The Coefficient of Price-Elasticity of Supply for a Product Is

question 252

Multiple Choice

The coefficient of price-elasticity of supply for a product is 2 if

• A) a 1 percent decrease in the price causes a 0.2 percent decrease in quantity supplied.
• B) a 2 percent decrease in price causes a 1 percent decrease in quantity supplied.
• C) a 1 percent decrease in price causes a 2 percent decrease in quantity supplied.
• D) a 2 percent decrease in price causes a 2 percent decrease in quantity supplied.

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Definitions:

Environmental Force

External factors such as social, economic, technological, competitive, and regulatory conditions that affect an organization's ability to operate effectively.

Communicate

To convey information or express thoughts and ideas clearly to someone else through speech, writing, or other forms of media.

Exchange

The act of giving one thing and receiving another in return, especially in terms of goods, services, or monetary currency.

Environmental Force

External factors such as social, economic, technological, competitive, and regulatory conditions that affect an organization's operations and decisions.