If the price elasticity of supply of doodads equals 0.50 and the price rises by 3 percent, then the quantity supplied of doodads will rise by ____.
A)0.50 percent.
B)1.50 percent.
C)6.00 percent.
D)15 percent.

Question

Quizplus · Accepted Answer

The quantity supplied will increase by half the percentage change in price, which is 1.5 percent. This is calculated as 0.50 multiplied by the 3 percent increase in price.

If the Price Elasticity of Supply of Doodads Equals 0