Suppose That the Value of the Supply Elasticity of a Product

question 135

Multiple Choice

Suppose that the value of the supply elasticity of a product is 2 and its price decreases by 14%.What will happen to the quantity supplied?

• A)It will increase by 7%.
• B)It will increase by 28%.
• C)It will decrease by 7%.
• D)It will decrease by 28%.
• E)It cannot be determined without further information.

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Definitions:

Externality

A term in economics where a cost or benefit that affects a party who did not choose to incur that cost or benefit.

External Attribution

The process of attributing the cause of one's own or others' behavior to external factors, rather than to internal personality traits.

Causal Attribution

The process of determining the underlying cause or reason behind an event or behavior, attributing it to internal dispositions or external situations.

Deliberately Knocked

Intentionally causing something to be struck or come into forceful contact, often used metaphorically to describe the act of bringing attention to or criticizing something.