If the quantity of picture frames supplied increases 15 percent when the price goes up 20 percent, the elasticity of supply is:
A) 15.
B) 20.
C) 1.33.
D) 0.75.

Name: If the quantity of picture frames supplied increases 15 percent when the price goes up 20 percent, the elasticity of supply is: A) 15. B) 20. C) 1.33. D) 0.75.
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Question

Quizplus · Accepted Answer

The elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price. Here, it is 15% / 20% = 0.75.

If the Quantity of Picture Frames Supplied Increases 15 Percent