Question

The supply of a good registers periodic increases. With each increase in the offer, the total receipts of the bidders increase. Indicate the correct statement: a) demand is elastic b) demand is inelastic c) supply is inelastic d) supply has unit elasticity.

291

likes1453 views

Cristian

4.7

61 Answers

To determine the correct statement, let's analyze the relationship between the increase in supply and the increase in total receipts of the bidders:

If the total receipts of the bidders increase with each increase in supply, it suggests that the demand for the good is responsive to changes in supply. In other words, as the supply of the good increases, the demand also increases, leading to higher total receipts.

Based on this information, the correct statement is: a) demand is elastic.

In an elastic demand, a change in supply leads to a proportionally larger change in quantity demanded, resulting in a greater change in total receipts.

If the total receipts of the bidders increase with each increase in supply, it suggests that the demand for the good is responsive to changes in supply. In other words, as the supply of the good increases, the demand also increases, leading to higher total receipts.

Based on this information, the correct statement is: a) demand is elastic.

In an elastic demand, a change in supply leads to a proportionally larger change in quantity demanded, resulting in a greater change in total receipts.

Frequently asked questions (FAQs)

What is the equation of a circle with its center at (5, -2) and a radius of 3?

+

What is the measure of an angle in degrees if it is \(\frac{\pi}{4}\) radians?

+

What is the value of the square root of x when x is equal to 16?

+

New questions in Mathematics