The coefficient of price-elasticity of supply for a product is 1.2 if

Multiple Choice

• a 3 percent decrease in the price causes a 0.4 percent decrease in quantity supplied.
• a 3 percent decrease in price causes a 1.2 percent decrease in quantity supplied.
• a 3 percent decrease in price causes a 3.6 percent decrease in quantity supplied.
• a 1.2 percent decrease in price causes a 1.2 percent decrease in quantity supplied.