Ceteris paribus, if a 20 percent increase in the price of shoes ...

[nelaaney]

Ceteris paribus, if a 20 percent increase in the price of shoes leads to a 10 percent increase in the quantity supplied of shoes, then the price elasticity of supply is equal to _____.
 a. 2
  b. 20
  c. 10
  d. 0.5
  e. 0.2

Question 2

An increase in the price of raw materials will shift both the MC and the ATC curves upward.
 a. True
  b. False
  Indicate whether the statement is true or false

[josephsuarez]

Answer to Question 1

d

Answer to Question 2

True