When the price of a good increases by 300 percent,the quantity supplied of the good increases from 200 units to 900 units.The price elasticity of supply of the good is ________.

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. The quantity supplied increased by 350% (from 200 to 900 units), and the price increased by 300%. Thus, the elasticity is 350% / 300% = 1.17.

When the Price of a Good Increases by 300 Percent,the