If the Price Elasticity of Supply of Television Sets Is

question 15

Multiple Choice

If the price elasticity of supply of television sets is constant and equal to 3, a 10 percent increase in price will result in a change in quantity supplied equal to

• A) 3 1/3 percent.
• B) 30 percent.
• C) 1/3 percent.
• D) -30 percent.

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Definitions:

Government Caps

Limits set by government regulation on the maximum price or quantity of a good or service that is allowed.

Pollution Permits

Licenses issued by governments that allow the holder to emit a specific amount of pollution; used as a way to control and reduce environmental harm.

Pollution Reduction

Actions or policies aimed at decreasing the amount of pollutants released into the environment.

Government Caps

Maximum limits set by the government on prices, wages, or other economic variables to control the economy.