Answered: If the price elasticity of supply is…

If the price elasticity of supply is 0.8, and price increased by 5%, quantity supplied would a. increase by 6.25% b. decrease by 4% c. increase by 4% d. decrease by 6.25%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the price elasticity of supply is 0.8, and price increased by 5%, quantity supplied would

a. increase by 6.25%

b. decrease by 4%

c. increase by 4%

d. decrease by 6.25%

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