Suppose a 4 Per Cent Increase in Price Results in a 2

question 89

Multiple Choice

Suppose a 4 per cent increase in price results in a 2 per cent increase in the quantity supplied of a good.Calculate the price elasticity of supply and characterise the product.

• A) 2; the product is elastic.
• B) 0.2; the product is inelastic.
• C) 0.5; the product is inelastic.
• D) 50%; the product is inelastic.

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Definitions:

Standardization

The process of establishing norms and uniform procedures to ensure consistency and comparability in the administration of tests or procedures.

Pretested Group

A group of individuals tested or assessed before being exposed to a specific treatment or condition in an experiment.

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Quantitative outcomes derived from assessments meant to evaluate knowledge, proficiency, or ability.

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A trait characterized by a willingness to take risks and try new experiences, often associated with high levels of adventure and curiosity.