If a 10 percent increase in price leads to a 20 percent increase in quantity supplied,then the elasticity of supply is 0.5.

Name: If a 10 percent increase in price leads to a 20 percent increase in quantity supplied,then the elasticity of supply is 0.5.
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

The elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price. In this case, it is 20% / 10% = 2.0, not 0.5.

If a 10 Percent Increase in Price Leads to a 20