If the Price of Hamburger Meat Increases by 20 Percent

question 12

Multiple Choice

If the price of hamburger meat increases by 20 percent and the quantity supplied by meat packing companies increases by 30 percent, what is the price elasticity of supply?

• A) 1.65
• B) 1.20
• C) 0.67
• D) 1.50

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Definitions:

Selective Attention

The cognitive process of focusing on a particular object in the environment for a certain period of time while ignoring irrelevant information that is simultaneously occurring.

Stereotypes

Overgeneralized beliefs about a particular group or category of people, often resulting in prejudgement and oversimplification.

Minority Identity

The sense of belonging to a specific demographic smaller in number within a larger population, often associated with cultural, racial, or social attributes.

Hindsight Bias

The propensity to think that one could have predicted the outcome once an event has happened.