If a 40% Change in Price Results in a 25

question 35

Multiple Choice

If a 40% change in price results in a 25% change in quantity supplied,then the price elasticity of supply is about

• A)0.63,and supply is elastic.
• B)0.63,and supply is inelastic.
• C)1.60,and supply is elastic.
• D)1.60,and supply is inelastic.

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Definitions:

Response Variable

The outcome or variable of interest that is measured or observed in a study, experiment, or analysis to see how it is affected by explanatory variables.

Fuel Efficiency

The measure of how far a vehicle can travel per unit of fuel.

Miles Per Gallon

A measure of a vehicle's fuel efficiency, indicating how many miles it can travel on one gallon of fuel.

Pick-Up Trucks

A type of motor vehicle characterized by an enclosed front cab and an open back for cargo transportation.