If a tripling of price triples the quantity of a good supplied, the price elasticity of supply is
A)3
B)300
C)1
D)-1
E)-3

Question

Quizplus · Accepted Answer

The price elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price. If both the price and quantity supplied triple, the percentage change is the same for both, resulting in an elasticity of 1.

If a Tripling of Price Triples the Quantity of a Good