Figure 6-11

-Refer to Figure 6-11.What is the value of the price elasticity of supply between g and h?
A)20 percent
B)0.5
C)2
D)0.02

Question

Figure 6-11
 
-Refer to Figure 6-11.What is the value of the price elasticity of supply between g and h?
A)20 percent 
B)0.5 
C)2 
D)0.02

Quizplus · Accepted Answer

Price elasticity of supply = percentage change in quantity supplied / percentage change in price. Moving from point g to point h, the quantity supplied increases from 12 to 24 (100% increase) while the price increases from $10 to $20 (100% increase). Therefore, the price elasticity of supply between g and h is 100% / 50% = 2.

Figure 6-11 -Refer to Figure 6-11.What Is the Value of the Price