If the Elasticity of Supply of a Good Was 2

question 106

Multiple Choice

If the elasticity of supply of a good was 2, how much would the price have to increase to lead to an increase in output of 6 percent?

• A)​3 percent.
• B)​4 percent.
• C)​8 percent.
• D)​12 percent.

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Definitions:

Marriage Penalty

In the tax system, the phenomenon that a two-income married couple pays more tax than the sum of two single people making the same money.

Two-Income Married Couples

Households in which both spouses earn income from employment.

Taxes

Mandatory financial charges or other types of levies imposed upon a taxpayer by a governmental organization.

Dividend Income

Earnings received from owning shares of stock in a corporation, typically paid out from the company's profits.