Suppose the price elasticity of supply for rocking chairs is 1.2 and the price increases by 20%.The quantity supplied will increase by ________ %.
A) 24
B) 20
C) 18
D) 12

Question

Quizplus · Accepted Answer

The quantity supplied will increase by 24% because the price elasticity of supply is 1.2, so a 20% increase in price leads to a 1.2 * 20% = 24% increase in quantity supplied.

Suppose the Price Elasticity of Supply for Rocking Chairs Is