Suppose an increase in demand causes the price to increase from $2 to $4 and the quantity to increase from 1,000 to 1,800.Using the midpoint method,the elasticity of supply equals
A) 0.86.
B) 1.17.
C) 2.74.
D) 0.68.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

The Answer of Suppose an increase in demand causes the price to increase from $2 to $4 and the quantity to increase from 1,000 to 1,800.Using the midpoint method,the elasticity of supply equals
A) 0.86.
B) 1.17.
C) 2.74.
D) 0.68.
E) None of the above answers is correct.

Suppose an Increase in Demand Causes the Price to Increase