Suppose the price elasticity of supply for crude oil is 0.6. How much would price have to rise to increase production by 12 percent?

A) 20 percent
B) 7.2 percent
C) 12 percent
D) 15 percent

Price Elasticity

The responsiveness of the quantity demanded or supplied of a good to a change in its price, a key concept in understanding consumer and producer behavior.

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials, used as a fuel source.