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

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

Quizplus · Accepted Answer

The 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 Percent Increase in the Price Results in a 9