Suppose when the price of jean jackets increased by 10 per cent,the quantity supplied increased by 16 per cent.Based on this information the price elasticity of supply of jean jackets is ________.
A) 0.625 per cent
B) 6% per cent
C) 1.6 per cent

Question

Quizplus · Accepted Answer

The price elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price. Here, it is 16% / 10% = 1.6.

Suppose When the Price of Jean Jackets Increased by 10