Question

Using the formula. Compute the elasticity of supply.

1. P1 = 5,000
P2 = 4,000
Qs1 = 1,000
Qs2 = 1,500

1. Qs -
2.Price -
3. Elasticity of supply -
4. Type of elasticity -
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Answer 1

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Final Answer :-

Qs = 1250

Price = 4500

Elasticity of supply = -1.8

(Note: If expressed as absolute value, we can say that Es = -1.8)

Type of elasticity = Elastic