If a tripling of price triples the quantity of a good supplied, the price elasticity of supply for this good is:
A) 3.
B) 300.
C) 1.
D) − 1.

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 tripling the price triples the quantity supplied, both the percentage change in quantity supplied and the percentage change in price are the same, resulting in an elasticity of 1.

If a Tripling of Price Triples the Quantity of a Good