If the price of shirts increases 10 percent and the quantity supplied of shirts increases 5 percent, then the elasticity of supply of shirts is:

Name: If the price of shirts increases 10 percent and the quantity supplied of shirts increases 5 percent, then the elasticity of supply of shirts is:
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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 5% / 10% = 0.5, which is less than 1, indicating inelastic supply.

If the Price of Shirts Increases 10 Percent and the Quantity