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Suppose that the price of product X rises by 6 percent and the quantity supplied of X increases by 3 percent. The coefficient of price
Suppose that the price of product X rises by 6 percent and the quantity supplied of X increases by 3 percent. The coefficient of price elasticity of supply for good X is
- negative, and therefore X is an inferior good.
- positive, and therefore X is a normal good.
- less than 1, and therefore supply is inelastic.
- more than 1, and therefore supply is elastic.
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