An attorney supplies 40 hours of work per week when her fee is $100 per hour but supplies 60 hours of work per week when her fee rises to $120 per hour.Using the midpoint formula, her elasticity of supply is equal to:
A)1.
B)0.8.
C)2.2.
D)0.45.

Question

Quizplus · Accepted Answer

Using the midpoint formula: 
Elasticity of Supply = [(60-40)/((60+40)/2)] / [(120-100)/((120+100)/2)] = 2/0.909 = 2.2
Therefore, the elasticity of supply is 2.2.

An Attorney Supplies 40 Hours of Work Per Week When