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Economics - Financial Markets 13 Online
OpenStudy (anonymous):

Suppose a 4 percent increase in price results in a 2 percent increase in the quantity supplied of a good. Calculate the price elasticity of supply and characterize the product. Answer 2; The product is elastic. 0.2; The product is inelastic. 0.5; The product is inelastic. 50%; The product is inelastic.

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