Question

5. The elasticity of supply of compact discs is 1.5. In other words, a 10 percent increase in the price of compact discs will cause a a. 15 percent decrease in demand. b. 15 percent decrease in the quantity supplied. c. 15 percent increase in the quantity supplied. d. 1.5 percent increase in the supply. c. 1.5 percent decrease in the supply.