If the price elasticity of supply for fresh eggplant is 0.8, then a 10 percent increase in the price of eggplant will cause a(n) _______ percent increase in the quantity supplied.
A) 8
B) 80
C) 1.2
D) 0.8

Question

Quizplus · Accepted Answer

The price elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price. Therefore, with an elasticity of 0.8, a 10 percent increase in price would lead to an 8 percent increase in quantity supplied (0.8 * 10 = 8).

If the Price Elasticity of Supply for Fresh Eggplant Is