The Price Elasticity of Supply Is 0

question 288

Multiple Choice

The price elasticity of supply is 0.6. This means that

• A) a $10 increase in price would increase quantity supplied by 60.
• B) a 150 percent increase in price would increase quantity supplied by 90 percent.
• C) a 50 percent increase in quantity will occur when price increases by 30 percent.
• D) a 10 percent increase in quantity will occur when price increases by 6 percent.

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Definitions:

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, associated with complex cognitive behavior, personality expression, decision making, and moderating social behavior.

Amygdala

A part of the brain's limbic system involved in emotion, particularly fear and pleasure.

Frontal Lobes

Lobes at the front of the brain’s cerebral cortex; they contain areas involved in short-term memory, higher-order thinking, initiative, social judgment, and (in the left lobe, typically) speech production.

Cerebral Cortex

is the outer layer of neural tissue of the cerebrum of the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.