Holding all other factors constant and using the midpoint method,if a tractor manufacturer increases production from 80 to 100 units when price increases by 15 percent,then supply is
A) inelastic,since the price elasticity of supply is equal to 0.68.
B) inelastic,since the price elasticity of supply is equal to 1.48.
C) elastic,since the price elasticity of supply is equal to 0.68.
D) elastic,since the price elasticity of supply is equal to 1.48.
Correct Answer:
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Q42: Figure 5-14 Q43: Holding all other factors constant and using Q44: Figure 5-14 Q45: An increase in the price of cheese Q46: Suppose that an increase in the price Q48: A bakery would be willing to supply Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents