The price of soap rose from $10 to $20, causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply
The price elasticity of supply can be calculated using the formula: % change in quantity supplied / % change in price. In this case,
the % change in quantity supplied is (120-50)/50 = 1.4 and the % change in price is (20-10)/10 = 1. Therefore, the price elasticity
of supply is 1.4/1 = 1.4, which is greater than 1. This means the supply is fairly elastic, meaning that the quantity supplied is
responsive to changes in price.
Contributions ({{ comment_count }})
Please wait...
Modal title
Report
Block User
{{ feedback_modal_data.title }}