Price Quantity Supplied

$1 4 units

$2 6 units

$3 8 units

$4 10 units

Based on the supply schedule above, which of the following is true of the product's price elasticity of supply?

ANSWER CHOICES:

a) It is violating the law of supply.

b) More information is needed.

c) It is 0.6 when increasing from $1 to $2.

d) It is 1.5 when increasing from $2 to $3.

e) It is 0.78 when increasing from $3 to $4.

The price of apples increases by 10% and the quantity supplied increases by 5%. What is true of the supply of apples in this scenario?

ANSWER CHOICES:

a) It is able to respond quickly to changes in price.

b) It is an exception to the law of supply.

c) It is inelastic.

d) It is elastic.

e) It is unit elastic.