Is it possible to calculate the numerical value of the price elasticity of supply for an item if all you are told is that a $1 rise in price leads to an increase in quantity supplied of 10 units?
A)Yes, the value of the price elasticity of supply is 10.
B)Yes, the value of the price elasticity of supply is 0.1.
C)No, but one can calculate this value if given the initial values for both price and quantity supplied.
D)No, but one can calculate this value if given the final values for both price and quantity supplied.
E)No, but one can calculate this value if given the initial and final values for both price and quantity supplied.

Question

Quizplus · Accepted Answer

To calculate the price elasticity of supply, you need the percentage change in quantity supplied and the percentage change in price, which requires both initial and final values for price and quantity supplied.

Is It Possible to Calculate the Numerical Value of the Price