Question

If price increases from $45 to $55, the market quantity supplied increases from 20 units per week to 30 units per week. The price elasticity of supply is _____

Answer 1

The answer is 2.25

Step-by-step explanation:

Price Elasticity of Supply (PES)= percentage change in Quantity demanded/ percentage change in price

PES= (30-20)/20 *100) /( 55-45)/45*100) = 50%/22.22% = 2.25