Holding All Other Factors Constant and Using the Midpoint Method,if

question 56

Multiple Choice

Holding all other factors constant and using the midpoint method,if a tractor manufacturer increases production from 80 to 100 units when price increases by 15 percent,then supply is

• A)inelastic,since the price elasticity of supply is equal to 0.68.
• B)inelastic,since the price elasticity of supply is equal to 1.48.
• C)elastic,since the price elasticity of supply is equal to 0.68.
• D)elastic,since the price elasticity of supply is equal to 1.48.

---

Definitions:

GIC

Stands for Guaranteed Investment Certificate, a secure investment that promises to return your principal plus interest.

Investment Savings

Funds set aside in financial instruments or accounts with the goal of generating income or profit over time.

Simple Interest

Interest earned only on the original principal amount, without compounding.

Daily Closing Balance

The amount of money in an account at the end of each business day, after all transactions have been accounted for.