Figure 5-15
-Refer to Figure 5-15.Using the midpoint method,what is the price elasticity of supply between points C and D?
A)0.21
B)0.29
C)0.73
D)1.36

Question

Figure 5-15 
-Refer to Figure 5-15.Using the midpoint method,what is the price elasticity of supply between points C and D?
A)0.21 
B)0.29 
C)0.73 
D)1.36

Quizplus · Accepted Answer

The price elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price. Between points C and D, the quantity supplied increases from 100 units to 150 units, a 50% increase. The price increases from $10 to $15, a 50% increase. Therefore, the price elasticity of supply is 50% / 50% = 1.

Figure 5-15 -Refer to Figure 5-15.Using the Midpoint Method,what Is the Price