WAEC - Economics (2014 - No. 30)
An increase in the price of a commodity from $10 to $ 15 leads to an increase in the quantity supplied from 10 units to 15 units. The price elasticity of supply is
0.
0.5.
1.
5.
Explicació
The price elasticity of supply = % change in quantity supplied / % change in price. When calculating the price elasticity of supply, economists determine whether the quantity supplied of a good is elastic or inelastic.
change in price = 10 - 15 = 5
change in quantity = 10 - 15 = 5
5 ÷ 5 = 1