If the quantity supplied increases by 8 percent when the price rises by 2 percent,the price elasticity of supply is ________ .
A) 10.0
B) 6.0
C) 0.25
D) 16.0
E) 4.0

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. Therefore, it is $ \frac{8\%}{2\%} = 4.0 $.

If the Quantity Supplied Increases by 8 Percent When the Price