OLED television prices rise by 10 percent, and in response the quantity of those OLED televisions supplied increases by 5 percent. The supply elasticity for OLED television sets in that price range is
A) 0.5.
B) 1.5.
C) 2.0.
D) -2.0.

Question

Quizplus · Accepted Answer

The supply elasticity is calculated as the percentage change in quantity supplied divided by the percentage change in price. Here, it is 5% / 10% = 0.5.

OLED Television Prices Rise by 10 Percent, and in Response