If the supply curve for orange juice is estimated to be Q = 40 + 2p, then
A) supply is price elastic at all prices.
B) supply is price inelastic at all prices.
C) supply is elastic only at prices below 20.
D) No general statements about price elasticity of supply can be made.
Question 2
If the supply curve for orange juice is estimated to be Q = 40 + 2p, then, at a price of 2, the price elasticity of supply is
A) .01.
B) .09.
C) 1.
D) 11.
