25.
C
It measures % change in supply of a product, with a % change in Price of that product.
26.
A
Elasticity of supply = 30/20 = 1.5
So, the elasticity of supply is elastic.
27.
C
Working note:
E = ((130000-100000)/(130000+100000)/2)/((8-7)/(8+7)/2)
E = 1.96
28.
A
Working note:
E = ((1800-1000)/(1800+1000)/2)/((4-2)/(4+2)/2)
E = .86
29.
B
It is a case of unitary elastic supply.
30.
A
It is a case of inelastic supply.
25) What is measured by the price elasticity of supply? A) The price elasticity of supply...
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