The Percentage Change in Price Is 5 Percent,while the Price

question 132

Multiple Choice

The percentage change in price is 5 percent,while the price elasticity of supply is 0.The percentage change in quantity supplied

• A) is 1.5 percent.
• B) does not change.
• C) is 2 percent.
• D) is -3 percent.
• E) is -7 percent.

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Definitions:

LRAC Curve

the Long-Run Average Cost curve, showing the lowest average cost at which any output level can be produced when all inputs are variable.

Increasing-Cost Industry

An industry where the costs of production increase as the output expands, often due to factors like resource depletion and higher input prices.

LRAC Curve

Long-Run Average Cost Curve, showing the lowest cost at which a firm can produce any given level of output in the long run, where all inputs are variable.

Increasing-Cost Industry

An industry in which production costs increase as firms enter the market, often due to limited resources or factors of production.