Question: The price of cakes rises by 15%. In response, the quantity supplied of cakes rises by 30%. The price elasticity of supply for cakes is:

The price of cakes rises by 15%. In response, the quantity supplied of cakes rises by 30%. The price elasticity of supply for cakes is:

  • a. 2.
  • b. 0.33.
  • c. 0.5.
  • d. –0.5.

Step by Step Solution

★★★★★

3.47 Rating (150 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a2 The ratio of the percentage change in quantity demanded t... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Is access control of greater concern in the flat-file database file environment?

Q:

What is the shear capacity of the RC beam described below considering the steel reinforcement and using the formula: VRsyAw 2fyd cot 8/s The shear reinforcement in the beam is provided by sets of...

Q:

1 How do you access Company Settings? 2 When is it appropriate to add beginning balances to accounts? 3 What steps need to be followed to add an account to the chart of accounts? 4 When you add a...

Q:

Higher average incomes increase the demand for preventative dental visits. Explain why this will lead the quantity supplied of dental visits to increase, but supply will not increase.

Q:

6. Higher average incomes increase the demand for preventative dental visits. Explain why this will lead the quantity supplied of dental visits to increase, but supply will not increase.

Q:

2 Define and calculate the elasticity of supply. The short-run supply curve slopes upward because producers can take actions quite quickly to change the quantity supplied in response to a price...

Q:

3 What are the main influences on the elasticity of supply that make the supply of some goods elastic and the supply of other goods inelastic? The short-run supply curve slopes upward because...

Q:

4 Provide examples of goods or services whose elasticities of supply are (a) zero, (b) greater than zero but less than infinity, and (c) infinity. The short-run supply curve slopes upward because...

Q:

5 How does the time frame over which a supply decision is made influence the elasticity of supply? Explain your answer. The short-run supply curve slopes upward because producers can take actions...

Q:

Suppose that X and Y are substitute goods. If the price of good X increases, we can expect a. a downward movement along the demand curve for good Y b. an upward movement along the demand curve for...

Q:

Nivola, Inc., produces chemicals for large biotech companies. It has the following data for manufacturing overhead costs during August 2017 Variable Fixed Actual costs incurred $34,000 $14,500 Costs...

Q:

Amy plans on putting $300 at the beginning of each month into a retirement savings account for the next 30 years (when she will retire). If the account earns J12 = 4.8%, how much money will be in her...

Q:

Gladiator Enterprises utilizes a 10% contingency reserve and a 2% management reserve for all its projects. The planned value (PV) during the first month of implementation of this project, is $13,000,...

Q:

Case Study: The mobile phone industry The mobile phone industry case is contained in the two Economist articles, "Battling for the palm of your hand" and "Upwardly mobile". Link:...

Q:

Jack and Jill recently negotiated a rate of 2% on their mortgage loan that has a 5-year term and 25-year amortization period. The Bank of Canada 5-year benchmark mortgage rate is 4.8%. What would be...

Q:

Question 15 Which premise doesn't address accident prevention? Accidents are always human error. O Accidents have causes. Accidents involve hazards that lead to unsafe acts and conditions. Accidents...

Q:

Design and describe an application-level protocol to be used in a multi-robot system equipped with multi-sensor. Assume the system has a central agent, which keeps a record of all activities, data...

Q:

Use the following data to answer the next two (2) questions: Product 1 Product 2 Product 3 Direct Material Cost $25,000 $30,000 $35,000 Direct Labor Cost $30,000 $40,000 $50,000 Direct Labor Hours...

Q:

what is the best diagnostic for a hard lump on the scalp

Q:

What steps of independent verification does the general ledger department perform?

Q:

Who should determine and prioritize the critical applications? How is this done? How frequently is it done?

Q:

Discuss the fundamental risk and control issues associated with fixed assets that are different from raw materials and finished goods.

Q:

Answer the following questions based on Tables 5P-1 and 5P-2. a. What is the quantity demanded at $10? What is the quantity supplied at $10? b. What is the quantity demanded at $25? What is the...

Q:

Use the areas labeled in the market represented in Figure 5P-7 to answer the following questions. a. What area(s) are consumer surplus at the market equilibrium price? b. What area(s) are producer...

Q:

In which of the following situations can you say, without further information, that consumer surplus decreases relative to the market equilibrium level? a. Your state passes a law that pushes the...