If the Percentage Change in Quantity Supplied Is 10% and the Percentage

question 36

Multiple Choice

If the percentage change in quantity supplied is 10% and the percentage change in price is 5% then the supply for the good is

• A)Elastic
• B)Inelastic
• C)Unit elastic
• D)Perfectly inelastic

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Definitions:

Advertising

The action of calling public attention to products, services, needs, etc., especially by paid announcements in newspapers and magazines, over radio or television, on billboards, etc.

Barriers to Entry

Factors that prevent or hinder companies from entering a specific market or industry, including high startup costs, strict regulations, and established competition, which can protect existing firms from new entrants.

Artificial Differences

Distinctions created or imposed in a situation or between objects that do not naturally or inherently exist.

Horizontal Differentiation

A strategy where products are made different from those of competitors on aspects other than price, such as quality or features, while aimed at satisfying the same basic need.