Assume the elasticity of of supply for a particular good has been estimated to equal 1.8.In this case,a 10 percent increase in product price would cause the quantity supplied to:

Question

Quizplus · Accepted Answer

The elasticity of supply is 1.8, meaning that for every 1% increase in price, the quantity supplied increases by 1.8%. Therefore, a 10% increase in price would result in an 18% increase in quantity supplied.

Assume the Elasticity of Of Supply for a Particular Good