If an Increase in Price from $1 to $2 Per

question 57

Multiple Choice

If an increase in price from $1 to $2 per unit leads to an increase in quantity supplied from 20 to 100 units,then the value of the price elasticity of supply is _____

• A)0.38.
• B)2.
• C)2.67.
• D)4.
• E)8.

---

Definitions:

Dollar-Weighted Return

A measure of an investment's return, taking into account the timing and size of cash flows into and out of the investment.

Internal Rate of Return

An estimate of the profitability of potential investments, calculated as the rate of return that sets the net present value of all cash flows (both positive and negative) from the investment equal to zero.

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a specified period, including interest, dividends, and capital gains.

Treasury Bill

Short-term government securities issued at a discount from the face value and maturing at par, used to finance government spending.