If Output in the Calculator Market Increases by 5 Percent

question 18

Multiple Choice

If output in the calculator market increases by 5 percent when the price increases by more than 5 percent, then

• A)supply is inelastic
• B)supply is elastic
• C)a small increase in price will cause a leftward shift of the supply curve
• D)a small increase in price will cause a rightward shift of the supply curve
• E)a large increase in price will cause a large shift of the supply curve

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Definitions:

Price Rise

An increase in the cost of goods or services, often reflecting factors like inflation, increased production costs, or higher demand.

Real Factors

Real factors typically refer to tangible inputs and conditions affecting economic outcomes, such as resources, technology, and workforce skills, as opposed to financial inputs.

Quantity Theory

An economic theory proposing a direct relationship between the amount of money in an economy and the level of prices of goods and services.

Money Supply

The comprehensive sum of available financial assets within an economy at a designated moment.