If a 4% increase in price leads to a increase in the... - Solved MCQs & Answer

1806EconomicsMedium

If a 4% increase in price leads to a increase in the quantity supplied of 8%?

APrice elasticity of demand is -2

BSupply is income elastic

CPrice elasticity of supply is -2

DSupply is price elastic

Correct answer

D. Supply is price elastic

Explanation

The correct answer is Supply is price elastic.

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