If the Price Elasticity of Supply of Tablets Is Constant

question 67

Multiple Choice

If the price elasticity of supply of tablets is constant and equal to 2.5, a 10 percent increase in price will result in a change in quantity supplied equal to

• A) 2.5 percent.
• B) 25 percent.
• C) 20 percent.
• D) -20 percent.

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Definitions:

Gay-Lussac's Law

A gas law stating that the pressure of a given amount of gas varies directly with its absolute temperature, provided the volume is kept constant.

Temperature

A physical quantity that expresses the subjective perceptions of hot and cold, measured with a thermometer.

Temperature Rises

An increase in the degree of heat present in a substance or environment, often measured in Celsius or Fahrenheit.

Pressure

The force exerted per unit area on the surface of an object, often measured in pascals (Pa) or atmospheres (atm).