The following data relate to the supply schedule of a product. Over which price range is the elasticity of supply greater than 1?
A) $10 to $15
B) $15 to $20
C) $20 to $25
D) $25 to $30 Over the price range $25 to $30,the change in quantity is (350 - 500)/(300 + 500)= 0.188 and the change in price is (25 - 30)/(25 + 30)= 0.091.Thus,elasticity is 0.188/0.091 = 2.07,which is greater than1.

Question

The following data relate to the supply schedule of a product.  Over which price range is the elasticity of supply greater than 1?
A) $10 to $15 
B) $15 to $20 
C) $20 to $25 
D) $25 to $30 Over the price range $25 to $30,the change in quantity is (350 - 500)/(300 + 500)= 0.188 and the change in price is (25 - 30)/(25 + 30)= 0.091.Thus,elasticity is 0.188/0.091 = 2.07,which is greater than1.

Quizplus · Accepted Answer

Over the price range $25 to $30, the elasticity of supply is greater than 1, as calculated in the provided solution. None of the other price ranges have an elasticity greater than 1.

The Following Data Relate to the Supply Schedule of a Product