If a 5 percent increase in price results in a 3 percent increase in the quantity supplied, the elasticity of supply is
A) 0.30.
B) 0.60.
C) 1.20.
D) 1.66.

Name: If a 5 percent increase in price results in a 3 percent increase in the quantity supplied, the elasticity of supply is A) 0.30. B) 0.60. C) 1.20. D) 1.66.
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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 3% / 5% = 0.60.

If a 5 Percent Increase in Price Results in a 3