3. When price increases by 10 per cent supply increases by 20 per cent. Which of the following is true? i. Supply is elastic. j. Supply is inelastic. k. Elasticity of supply is 0.5. l. Marginal cost doubles.
3. When price increases by 10 per cent supply increases by 20 per cent. Which of the following is true? i. Supply is elastic. j. Supply is inelastic. k. Elasticity of supply is 0.5. l. Marginal cost doubles.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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3. When price increases by 10 per cent supply increases by 20 per cent. Which of the following is true?
i. Supply is elastic.
j. Supply is inelastic.
k. Elasticity of supply is 0.5.
l. Marginal cost doubles.
5. Which of the following is not true?
a. A rise in price the of air travel causes demand to fall.
b. A rise in the price of air travel causes a rise in the demand for train travel over similar routes.
c. Where the price of air tickets is above equilibrium, supply will exceed demand.
d. Where the price of air tickets is above equilibrium, supply will exceed.
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