Answered: f the price of a good with a price…

f the price of a good with a price elasticity of supply of 2.5 increases by 10%, the quantity supplied will: A. Fall by 25% B. R ise by 25% C. Fall by 40% D. R ise by 0.4

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 35P: The equation for a supply curve is 4P=Q. What is the elasticity of supply as price rises from 3 to...

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Question

. If the price of a good with a price elasticity of supply of 2.5 increases by 10%, the
quantity supplied will:
A. Fall by 25%
B. R ise by 25%
C. Fall by 40%
D. R ise by 0.4%

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