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4. Elasticity
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Problem 15
4. Elasticity
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4. Elasticity / Price Elasticity of Supply / Problem 12
Problem 12
Why is the price elasticity of supply always positive?
A
Because it measures the responsiveness of demand to price changes.
B
Because according to the law of supply, as price increases, quantity supplied also increases.
C
Because supply curves are always downward sloping.
D
Because as price increases, quantity demanded decreases.
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