The price of cakes rises by 15%. In response, the quantity supplied of cakes rises by 30%. The price elasticity of supply for cakes is:
A)2.
B)0.5.
C)-0.5.
D)0.33.

Name: The price of cakes rises by 15%. In response, the quantity supplied of cakes rises by 30%. The price elasticity of supply for cakes is: A)2. B)0.5. C)-0.5. D)0.33.
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Question

Quizplus · Accepted Answer

The price elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price, which is (30% / 15%) = 2.

The Price of Cakes Rises by 15