If the Price Elasticity of Supply Is 0

question 62

Multiple Choice

If the price elasticity of supply is 0.75, then when the price of Good Y falls by 10 percent, the quantity supplied of Good Y:

• A) rises by 7.5 percent.
• B) rises by 133 percent.
• C) falls by 7.5 percent.
• D) falls by 133 percent.

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Definitions:

Budgeted Sales

Projected sales figures used for planning purposes, often as part of a company's budgeting process to estimate future revenue.