If Price Increases from $45 to $55, the Market Quantity

question 75

Multiple Choice

If price increases from $45 to $55, the market quantity supplied increases from 20 units per week to 30 units per week.The price elasticity of supply is

• A)1/2 = 0.5
• B)1.0
• C)11/6 = 1.8333
• D)9/4 = 2.25
• E)2.0

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Definitions:

Linear Model

A mathematical model that describes a linear relationship between two or more variables.

Model

A representation, often mathematical, of a real-world process, object, or concept, designed to simulate its behavior under certain conditions.

Applicable

Relevant or suitable in a given situation or for a specific purpose.

First-Birth Rate

The frequency at which first births occur within a defined population.