The Figure Above Shows the Supply Curve for Roses

question 22

Multiple Choice

The figure above shows the supply curve for roses.
-Suppose an increase in supply lowers the price from $10 to $8 and increases the quantity demanded from 100 units to 130 units.Using the midpoint method,the elasticity of demand equals

• A) 1.17.
• B) 0.85.
• C) 0.26.
• D) 1.56.
• E) None of the above answers is correct.

---

Definitions:

Gross Requirement

The total demand for an item or component before considering inventory on hand or scheduled receipts, typically used in production and inventory planning.

Bill Of Material

A complete rundown of essential substances, components, and procedures for constructing, crafting, or restoring a product or service.

Cumulative Lead Time

The total time required to manufacture a product, including the time to procure all necessary materials and components.

Component Y

A hypothetical or specific part of a larger system or machine, typically referred to in the context of manufacturing, assembly, or engineering projects.