A T-Shirt Maker Would Be Willing to Supply 75 T-Shirts

question 39

Multiple Choice

A t-shirt maker would be willing to supply 75 t-shirts per day at a price of $18.00 each.At a price of $20.00,the t-shirt maker would be willing to supply 100 t-shirts.Using the midpoint method,the price elasticity of supply for t-shirts is about

• A)0.37,and supply is elastic.
• B)0.37,and supply is inelastic.
• C)2.71,and supply is elastic.
• D)2.71,and supply is inelastic.

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Definitions:

GDP Deflator

A measure of the price level of all domestically produced goods and services in an economy, used to adjust nominal GDP to real GDP.

Gauge Of Inflation

A measure that reflects how much and how quickly prices for goods and services rise over a period, indicating the rate of inflation.

Basket Of Goods

A fixed set of consumer products and services valued on a regular basis for purposes of tracking inflation.

CPI

The Consumer Price Index measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.