If a 10 percent increase in price results in an 18 percent increase in quantity supplied, the elasticity of supply is
A)0.3.
B)0.6.
C)1.2.
D)1.8.
E)9.0.

Name: If a 10 percent increase in price results in an 18 percent increase in quantity supplied, the elasticity of supply is A)0.3. B)0.6. C)1.2. D)1.8. E)9.0.
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Question

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 18% / 10% = 1.8.

If a 10 Percent Increase in Price Results in an 18