Suppose the Price Elasticity of Supply for Minivans Is 0

question 8

Multiple Choice

Suppose the price elasticity of supply for minivans is 0.3 in the short run and 1.2 in the long run.If an increase in the demand for minivans causes the price of minivans to increase by 5%,then the quantity supplied of minivans will increase by about

• A)1.5% in the short run and 6% in the long run.
• B)6% in the short run and 1.5% in the long run.
• C)16.7% in the short run and 4.2% in the long run.
• D)4.2% in the short run and 16.7% in the long run.

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Definitions:

Stereotype Threat

The risk of confirming negative stereotypes about one's group, which can have a detrimental effect on performance and behavior.

Stereotype Lift

A phenomenon wherein individuals from non-stereotyped groups perform better in situations where their counterparts are negatively stereotyped.

Stigma Consciousness

The awareness or sensitivity to the stigma one might face based on an attribute, identity, or status, affecting how one navigates social interactions and perceives oneself.

Discrimination Discrepancy

A difference or inconsistency in the treatment of individuals or groups based on characteristics such as race, gender, or age.