The Price Elasticity of Supply for Umbrellas Is 2

question 208

Multiple Choice

The price elasticity of supply for umbrellas is 2.Suppose you are told that following a price increase,quantity supplied increased by 30 per cent.What was the percentage change in price that brought this about?

• A) 60 per cent
• B) 15 per cent
• C) 6.7 per cent
• D) Impossible to determine without additional information

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Definitions:

Interest Expense

This is the cost incurred by an entity for borrowed funds over a period of time, typically expressed as an annual percentage.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.

Dividends Paid

The part of a company's profits paid out to shareholders, typically as cash or shares.

Interest Expense

The cost incurred by an entity for borrowed funds; it is the price paid for the use of borrowed money, or, for corporations, the price paid for the use of borrowed capital.