If a 5 per cent increase in the price results in a 9 per cent increase in quantity supplied, the elasticity of supply is
A) 1.20.
B) 0.30.
C) 0.55.
D) 1.80.

Name: If a 5 per cent increase in the price results in a 9 per cent increase in quantity supplied, the elasticity of supply is A) 1.20. B) 0.30. C) 0.55. D) 1.80.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

Elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price. Here, it is 9% / 5% = 1.80.

If a 5 Per Cent Increase in the Price Results