From the table above, Calculate the price elasticity of supply

cute mira

10 years ago

please i need the working

Hopeheart

6 years ago

My school, the working and picked option is wrong!
The formulae you used was "Elasticity of supply".
which is =>%∆Qd/%∆P.

The first step...

The literal formulae is => ∆Qs/Old Qs x 100
=(24 - 20 )/20 x 100
=4/20 x 100
=20%

This second step...

∆P/Old price x 100
=(10 - 8 )/8 x 100
=2/8 x 100
=25%

The third step
%∆Qs/%∆price
=20/25
=0.8

This is the working, kindly eradicate this errors.

Deborahe

4 years ago

The answer is 0.80 not 2.00

joshua1234

9 years ago

quantity supplied= old qty supplied - new qty supplied÷old qty supplied × 100

20-24×100÷old price

4×100÷20 = 20

price supplied= old price - new price ÷ old price × 100

2×100÷8 = 25



%qty supplied ÷ %price



20÷25 = 0.8