Suppose a new type of tea is found to be healthy Thes made the equilibrium price rise by 20% As a result, the quantity of tea supplied increased by 40% The price elasticity of supply of tea is OA 20 OB. -2.25 Oc.-080 OD 125

Suppose a new type of tea is found to be healthy Thes made the equilibrium price rise by 20% As a result, the quantity of tea supplied increased by 40% The price elasticity of supply of tea is OA 20 OB. -2.25 Oc.-080 OD 125

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose a new type of tea is found to be healthy This made the equilibrium price rise by 20% As a result, the quantity of tea supplied increased by 40% The price
elasticity of supply of tea is
OA 20
OB-225
OC.-0.80
OD. 125

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