Which Factor Is the Most Important in Determining the Price

question 104

Multiple Choice

Which factor is the most important in determining the price elasticity of supply?

• A) the number of close substitutes
• B) the time period the producer has to adjust inputs and outputs
• C) the intensity of the need on behalf of consumers
• D) the number of alternative uses of the good

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Definitions:

Conditional Probability

The probability of an event occurring given that another event has already occurred, reflecting how the likelihood of an event can be affected by knowledge of another.

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Balanced Portfolio

An investment portfolio that diversifies across different asset classes to balance risk and return.

Joint Probability Table

A tabular representation that shows the likelihood of different combinations of two or more variables occurring.