Holding All Other Factors Constant and Using the Midpoint Method,if

question 21

Multiple Choice

Holding all other factors constant and using the midpoint method,if a candy manufacturer increases production by 20 percent when the market price of candy increases from $0.50 to $0.60,then supply is

• A)inelastic,since the price elasticity of supply is equal to .91.
• B)inelastic,since the price elasticity of supply is equal to 1.1.
• C)elastic,since the price elasticity of supply is equal to 0.91.
• D)elastic,since the price elasticity of supply is equal to 1.1.

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Definitions:

Delivery Date

The specific day on which a product or service is promised to be delivered to the customer.

Predictable Demand

A situation where future customer demand for a product or service can be forecasted with a relatively high degree of accuracy based on historical data and trends.

Unpredictable Demand

Demand characterized by high variability and challenging to forecast accurately, often influenced by external factors and trends.

Low Cost Countries

Countries with lower labor and production costs, making them attractive locations for manufacturing and sourcing components.