Assume the Price of Widgets Increases by 22 Percent and the Quantity

question 139

Multiple Choice

Assume the price of widgets increases by 22 percent and the quantity supplied increases by 27 percent as a result. The elasticity of supply coefficient is:

• A)​greater than 1, implying that widgets are normal goods.
• B)​less than 1, implying that widgets are inferior goods.
• C)​greater than 1, implying that supply is elastic.
• D)​greater than 1, implying that supply is inelastic.

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Definitions:

College Professor

An academic instructor or faculty member at a college or university, often involved in teaching, research, and service to the institution.

Attorney

A professional authorized to practice law, representing clients in legal matters and giving legal advice.

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An unconventional metric that could refer to the number of different toppings used or sold by a business or consumed by an individual over a year.

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Various ingredients added on top of the pizza crust and sauce before baking, such as vegetables, meats, and cheese.