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Suppose That the Price of a Money Clip Increases from $0.75

question 172

Multiple Choice

Suppose that the price of a money clip increases from $0.75 to $0.90 and quantity supplied rises from 8000 units to units. Use the midpoint formula to calculate the price elasticity of supply. Suppose that the price of a money clip increases from $0.75 to $0.90 and quantity supplied rises from 8000 units to units. Use the midpoint formula to calculate the price elasticity of supply.   A)  1.22 B)  1.0 C)  0.82 D)  0.07


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