Scenario 5.1 The Demand for Noodles Is Given by the Following Equation

question 24

Multiple Choice

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10.
-There are some special types of goods for which supply cannot change, irrespective of the length of time allowed for change, such as Beethoven symphonies. The price elasticity of supply for these goods is _____.

• A)infinite
• B)nonexistent
• C)negative
• D)zero
• E)unity

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