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The Price Elasticity of Supply Is Always a Positive Value

question 272

Multiple Choice

The price elasticity of supply is always a positive value because
i.there is a direct relationship between the price and the quantity supplied.
ii.as the equilibrium price increases,the equilibrium quantity also always increases.
iii.buyers are willing to pay a higher price for larger quantities.


Definitions:

Demand Curve

An illustrated chart that displays the connection between a product's price and the amount consumers want to buy.

Quota

Trade limitations set by the government which restrict the amount or fiscal value of products that can be brought in or sent out over a certain period.

Demand Price

The maximum amount consumers are prepared to spend on a product or service for a specific quantity.

Taxicab Medallions

License plates issued by a local government authority that allow a vehicle to operate as a taxi.

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