If the Price of Music CDs Increases by 10 Percent

question 192

True/False

If the price of music CDs increases by 10 percent and the quantity supplied increases by 20 percent, the elasticity of supply is equal to 2.0, perhaps indicating the ease of increased production at a relatively constant unit cost.

---

Definitions:

Birth Order

The order in which siblings are born, an important concept in Alfred Adler’s psychology.

Conscientiousness

A personality quality that embodies a person's prowess in organization, steadfastness, and a considerable sense of duty.

Agreeableness

A personality trait that involves being warm, friendly, and tactful, and having a positive outlook towards others.

Hypersensitive Narcissism

A condition characterized by extreme sensitivity to criticism and a strong need for admiration combined with a lack of empathy; closely related to vulnerable narcissism.