Refer to the diagram and assume that price decreases from $10 to $2. The coefficient of the price elasticity of supply (midpoint formula)relating to this price change is about
A)4, and supply is elastic.
B)1, and supply is unit elastic.
C)0.5, and supply is inelastic.
D)0.25, and supply is inelastic.

Question

Refer to the diagram and assume that price decreases from $10 to $2. The coefficient of the price elasticity of supply (midpoint formula)relating to this price change is about
A)4, and supply is elastic. 
B)1, and supply is unit elastic. 
C)0.5, and supply is inelastic. 
D)0.25, and supply is inelastic.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram and assume that price decreases from $10 to $2. The coefficient of the price elasticity of supply (midpoint formula)relating to this price change is about
A)4, and supply is elastic. 
B)1, and supply is unit elastic. 
C)0.5, and supply is inelastic. 
D)0.25, and supply is inelastic.

Refer to the Diagram and Assume That Price Decreases from $10