Scenario 5-3 Suppose That the Supply of Aged Cheddar Cheese Is Inelastic,and

question 38

Multiple Choice

Scenario 5-3
Suppose that the supply of aged cheddar cheese is inelastic,and the supply of bread is elastic.Both goods are considered to be normal goods by a majority of consumers.Suppose that a large income tax increase decreases the demand for both goods by 10%.
-Refer to Scenario 5-3.The price elasticity of supply for aged cheddar cheese could be

• A)-1.
• B)0.
• C)0.5.
• D)1.5.

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Definitions:

Evidence-Based Management

The conscientious use of current best evidence in managerial decision making.

Scientific Method

A systematic approach to research and experimentation used to explore observations and answer questions.

Decision-Making Process

A systematic approach to making choices among various alternatives, typically involving problem identification, analysis, and selecting the best option.

Maslow's Theory

A psychological theory proposed by Abraham Maslow that suggests human beings have a hierarchy of needs that must be satisfied for personal development and motivation.