Multiple Choice
The price elasticity of supply is always a positive value because i. there is a direct relationship between the price and the quantity supplied.
Ii. as the equilibrium price increases, the equilibrium quantity also always increases.
Iii. buyers are willing to pay a higher price for larger quantities.
A) i only
B) ii only
C) iii only
D) i and ii
E) ii and iii
Correct Answer:
Verified
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