Businesses producing loaves of bread decrease the quantity supplied 10 percent when the price decreases by 5 percent. The price elasticity of supply for bread is
Answer
The price elasticity of supply for bread is
=%change in quantity/%change in price
=-10/(-5)
=2
the price elasticity of demand is 2
option 5
Businesses producing loaves of bread decrease the quantity supplied 10 percent when the price decreases by 5 percent. Th...
A) If price elasticity of supply is 1.6 and price increases by 2 percent, quantity supplied will increase by? Option 1: < 2 percent Option 2: > 2 percent B) If price elasticity of supply is 0.6 and price decreases by 2 percent, quantity supplied will increase by? Option 1: < 2 percent Option 2: > 0.6 percent
1.) Suppose the price elasticity of demand for bread is 2.00. If the price of bread falls by 10%, the quantity demanded will increase by: a. 2 percent and total expenditures on bread will rise. b. 2 percent and total expenditures on bread will fall. c. 20 percent and total expenditures on bread will rise. d. 20 percent and total expenditures on bread will fall. e. 20 percent and total expenditures on bread will be unchanged. 2.) Suppose that a...
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