Suppose the Price Elasticity of Supply for Minivans Is 0

question 8

Multiple Choice

Suppose the price elasticity of supply for minivans is 0.3 in the short run and 1.2 in the long run.If an increase in the demand for minivans causes the price of minivans to increase by 5%,then the quantity supplied of minivans will increase by about

• A)1.5% in the short run and 6% in the long run.
• B)6% in the short run and 1.5% in the long run.
• C)16.7% in the short run and 4.2% in the long run.
• D)4.2% in the short run and 16.7% in the long run.

---

Definitions:

Neurological Testing

Neurological testing involves a series of tests that assess nerve function and health, aiding in the diagnosis of diseases of the brain, spinal cord, or other parts of the nervous system.

Localized Functions

The concept that specific parts of the brain are responsible for specific functions or activities.

Asymmetrically

In an uneven or unbalanced way, often referring to shapes or distributions that are not identical on both sides.

Social Neuroscience

Interdisciplinary field that seeks to understand how the brain mediates social interactions.