Refer to the diagram and assume that price increases from $2 to $10. The coefficient of the price elasticity of supply (midpoint formula)relating to this price change is about
A)5, and supply is elastic.
B)1, and supply is unit elastic.
C)0.25, and supply is inelastic.
D)2.5, and supply is elastic.

Question

Refer to the diagram and assume that price increases from $2 to $10. The coefficient of the price elasticity of supply (midpoint formula)relating to this price change is about
A)5, and supply is elastic. 
B)1, and supply is unit elastic. 
C)0.25, and supply is inelastic. 
D)2.5, and supply is elastic.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram and assume that price increases from $2 to $10. The coefficient of the price elasticity of supply (midpoint formula)relating to this price change is about
A)5, and supply is elastic. 
B)1, and supply is unit elastic. 
C)0.25, and supply is inelastic. 
D)2.5, and supply is elastic.

Refer to the Diagram and Assume That Price Increases from $2