-Refer to the graph above to answer this question.What is the supply elasticity of S₁ in the $2.50 to $4.00 range?

Question

-Refer to the graph above to answer this question.What is the supply elasticity of S₁ in the $2.50 to $4.00 range? A)0.23. B)0.92. C)1.08. D)2.17.

Quizplus · Accepted Answer

Supply elasticity is calculated as the percentage change in quantity supplied divided by the percentage change in price. The given elasticity of 1.08 suggests that for every 1% increase in price, the quantity supplied increases by 1.08%.

-Refer to the Graph Above to Answer This Question