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A 30% increase in price led the quantity supplied of bicycles in a competitive market to increase from 390.00 to 420.00. 1st attempt Part 1 (1 point)See Hint What is the price elasticity of supply for
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A 30% increase in price led the quantity supplied of bicycles in a competitive market to increase from 390.00 to 420.00. 1st attempt Part 1 (1 point)See Hint What is the price elasticity of supply for bicycles? Part 2 (1 point)See Hint What is the best description of the price elasticity of supply for bicycles? Choose one: A. unitary elastic B. normal C. elastic D. inelastic

User Zaartha
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Answer: 0.26

Inelastic- C

Explanation:

Price elasticity of supply is calculated as the percentage change is quantity supplied divided by percentage change in price.

The percentage change in price = 30%

The percentage change in supply = (420 -390) ÷ 390 × 100 =7.69%

Price elasticity = 7.69÷30 = 0.26

When elasticity of supply is less than 1 ,it is inelastic

User Jjrdk
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