Suppose that an increase in the price of melons from $1.00 to S1.50 per pound increases the quantity of melons that melon farmers produce from 2 million pounds to 4 million pounds. The price elasticity of supply in this case indicates that supply is

Suppose that an increase in the price of melons from $1.00 to S1.50 per pound increases the quantity of melons that melon farmers produce from 2 million pounds to 4 million pounds. The price elasticity of supply in this case indicates that supply is

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 2SCQ: From the data in Table 5.6 about supply of alarm clocks, calculate the price elasticity of supply...

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Question

Suppose that an increase in the price of melons from S1.00 to $1.50 per pound increases the quantity of melons that
melon farmers produce from 2 million pounds to 4 million pounds. The price elasticity of supply in this case indicates
that supply is
unit elastic
elastic
negative
inelastic
O perfectly inelastic

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