If the price of milk increased by 5 per cent because of an increase in the demand for milk, and the quantity of milk supplied increased by 7 per cent,
A) milk is more of a luxury than a necessity.
B) milk is more of a necessity than a luxury.
C) the supply curve of milk has shifted rightward.
D) the price elasticity of supply of milk is greater than one.
Correct Answer:
Verified
Q93: When the percentage change in quantity demanded
Q94: Which of the following items will have
Q95: A negative value for the cross elasticity
Q96: Suppose that the quantity of pizza demanded
Q97: If the elasticity of supply of TV
Q99: If tea and coffee are substitutes, the
Q100: The more substitutes available for a product,
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