A Cafeteria Is Willing to Produce 100 Bottles of Soda

question 10

Multiple Choice

A cafeteria is willing to produce 100 bottles of soda when the price is $1 and 150 bottles of soda when the price is $1.30, other things being equal. The price elasticity of supply of soda is

• A) 1.53.
• B) 0.67.
• C) 0.10.
• D) 0.50.

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