The price of one-bedroom apartments in Mildura increased from $55,000 to $65,000 and the quantity of apartments for sale increased from 25 to 30. Using the midpoint method, the price elasticity of supply for apartments in Mildura is equal to

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The price elasticity of supply is calculated using the midpoint method as the percentage change in quantity supplied divided by the percentage change in price. The percentage change in quantity is (30-25)/((30+25)/2) = 0.1818, and the percentage change in price is (65,000-55,000)/((65,000+55,000)/2) = 0.1667. The elasticity is 0.1818/0.1667 = 1.09.

The Price of One-Bedroom Apartments in Mildura Increased from $55,000