Question 43
MediumOriginal questionSupply of a good has an elasticity of 0.5. If its price rises by 20%, the quantity supplied will rise by
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
% change in quantity supplied = 0.5 × 20% = 10%.
- Concept
- Using elasticity of supply
- Typical timeTypical
- 70 s
- Your timeYours
- —
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