If the elasticity of supply is .25,then a 10% increase in price will result in a 2.5% increase in quantity supplied.

Name: If the elasticity of supply is .25,then a 10% increase in price will result in a 2.5% increase in quantity supplied.
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Quizplus · Accepted Answer

The formula for elasticity of supply is (% change in quantity supplied / % change in price). If the elasticity of supply is .25, a 10% increase in price would result in a (% change in quantity supplied) of 2.5% (0.25 * 10%). Therefore, the statement is true.

If the Elasticity of Supply Is