Refer to the figure above.What is the price elasticity of supply between points A and B above?
A) -1
B) 1/3
C) 1
D) 2 The change in quantity is (12 - 6)/(12 + 6)= 0.33 and the change in price is (4 - 2)/(4 + 2)= 0.33.Thus,the elasticity is 0.33/0.33 = 1.0.

Question

Refer to the figure above.What is the price elasticity of supply between points A and B above?
A) -1 
B) 1/3 
C) 1 
D) 2 The change in quantity is (12 - 6)/(12 + 6)= 0.33 and the change in price is (4 - 2)/(4 + 2)= 0.33.Thus,the elasticity is 0.33/0.33 = 1.0.

Quizplus · Accepted Answer

The price elasticity of supply between points A and B is calculated as (change in quantity supplied/change in price) = (6/18)/(2/6) = 1. Therefore, the best choice is C.

Refer to the Figure Above