An increase in the demand for green tea raises the price of green tea from $16 a pound to $20 a pound.As a result, quantity supplied increases by 30 percent.Using the midpoint formula, what is the value of the price elasticity of supply?
A)1.35
B)1.875
C)2.22
D)7.5

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The Answer of An increase in the demand for green tea raises the price of green tea from $16 a pound to $20 a pound.As a result, quantity supplied increases by 30 percent.Using the midpoint formula, what is the value of the price elasticity of supply?
A)1.35
B)1.875
C)2.22
D)7.5

An Increase in the Demand for Green Tea Raises the Price