If the Price Elasticity of Supply Is 0

question 20

Multiple Choice

If the price elasticity of supply is 0.8,and price increased by 5%,quantity supplied would

• A)increase by 4%.
• B)increase by 6.25%.
• C)decrease by 4%.
• D)decrease by 6.25%.

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Definitions:

FOB Destination

A shipping term that indicates the seller is responsible for the goods and shipping costs until the merchandise reaches the buyer's location.

Trade Discounts

Price reductions granted by sellers to buyers in the commercial chain, often based on volume purchased or during promotional periods.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity.

Raw Materials

Materials in their natural, unprocessed state used as inputs in production processes.