Suppose the Value of the Price Elasticity of Supply Is

question 160

Multiple Choice

Suppose the value of the price elasticity of supply is 4.What does this mean?

• A)A 4 percent increase in the price of the good causes quantity supplied to increase by 1 percent.
• B)A 1 percent increase in the price of the good causes the supply curve to shift upward by 4 percent.
• C)A 1 percent increase in the price of the good causes quantity supplied to increase by 4 percent.
• D)For every $1 increase in price, quantity supplied increases by 4 units.

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Definitions:

Rational Persuasion

The use of logical arguments or factual evidence to influence others' beliefs or decisions.

Apprising Influence Tactic

A method of persuasion that involves explaining the personal benefits or rewards that an individual can gain from performing a requested action.

Expert Power

A form of power that arises from the skills or expertise one has, and the respect and trust these abilities garner from others.

Polite Request

A respectful or courteous expression of desire or need.