Use the following to answer questions :
Figure 4-1
-The price elasticity of supply shown in Figure 4-1 between points B and C is:
A).1.
B).5.
C)1.
D)5
E)none of the above.

Question

Use the following to answer questions :
Figure 4-1 
-The price elasticity of supply shown in Figure 4-1 between points B and C is:
A).1. 
B).5. 
C)1. 
D)5 
E)none of the above.

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 the elasticity coefficient is equal to 1, it indicates unit elasticity, meaning the percentage change in quantity supplied is equal to the percentage change in price. Since both A and C indicate an elasticity of 1, but the question likely contains a typo or formatting issue, C is chosen as the correct answer based on the standard format of providing unique answers.

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