Asked by
Jessica Bernard
on Nov 25, 2024
Verified
The coefficient of price-elasticity of supply for a product is 2 if
A) a 1 percent decrease in the price causes a 0.2 percent decrease in quantity supplied.
B) a 2 percent decrease in price causes a 1 percent decrease in quantity supplied.
C) a 1 percent decrease in price causes a 2 percent decrease in quantity supplied.
D) a 2 percent decrease in price causes a 2 percent decrease in quantity supplied.
Price-Elasticity
A measure of how responsive the quantity demanded of a good is to a change in its price, indicating how shifts in price can affect supply and demand.
Quantity Supplied
The amount of a good or service that producers are willing and able to sell at a specific price.
Coefficient
A predetermined or specific number that is positioned in front of and serves to multiply the variable in a mathematical expression.
- Master the theory behind price elasticity and its influence on supply and demand.
- Assess how alterations in pricing impact the quantities of supply and demand through an analysis based on the concept of elasticity.
Verified Answer
JC
Learning Objectives
- Master the theory behind price elasticity and its influence on supply and demand.
- Assess how alterations in pricing impact the quantities of supply and demand through an analysis based on the concept of elasticity.