If a 20 percent increase in the price led to a 15 percent increase in quantity supplied, the elasticity of supply is:

Name: If a 20 percent increase in the price led to a 15 percent increase in quantity supplied, the elasticity of supply 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 15%/20% = 0.75, which is less than 1, indicating inelastic supply.

If a 20 Percent Increase in the Price Led to a 15