Table 5.6
$$\begin{array} { | c | c | }
\hline \text { Quantity Supplied } & \text { Frice } \
\hline 10 & \$ 10 \
\hline 20 & \$ 20 \
\hline 30 & \$ 30 \
\hline 40 & \$ 40 \
\hline 50 & \$ 50 \
\hline
\end{array}$$
-Refer to Table 5.6.If price increases from $10 to $30,the price elasticity of supply is _____
A)10.
B)5.
C)1.
D)2.
E)0.5.

Question

Table 5.6
 $$\begin{array} { | c | c | } 
\hline \text { Quantity Supplied } & \text { Frice } \
\hline 10 & \$ 10 \
\hline 20 & \$ 20 \
\hline 30 & \$ 30 \
\hline 40 & \$ 40 \
\hline 50 & \$ 50 \
\hline
\end{array}$$
-Refer to Table 5.6.If price increases from $10 to $30,the price elasticity of supply is _____
A)10.
B)5.
C)1.
D)2.
E)0.5.

Quizplus · Accepted Answer

The price elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price. From $10 to $30, the quantity supplied changes from 10 to 30, which is a 200% increase. The price also increases by 200%. Thus, the elasticity is 200%/200% = 1.

Table 56 -Refer to Table 5