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

question 56

Multiple Choice

Holding all other factors constant and using the midpoint method,if a tractor manufacturer increases production from 80 to 100 units when price increases by 15 percent,then supply is

• A)inelastic,since the price elasticity of supply is equal to 0.68.
• B)inelastic,since the price elasticity of supply is equal to 1.48.
• C)elastic,since the price elasticity of supply is equal to 0.68.
• D)elastic,since the price elasticity of supply is equal to 1.48.

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Definitions:

U.S. Dollars

The official currency of the United States, used for most transactions and considered a standard measure of value.

Japanese Yen

Japanese Yen is the official currency of Japan, known internationally by the ISO code JPY.

U.S. Dollars

The currency of the United States of America, used as the standard unit of money in international trade and domestic transactions.

Airline Ticket

A document, either electronic or paper, issued by an airline to confirm an individual's entitlement to a seat on a flight.