If the quantity supplied of tomatoes rises from 7 million to 9 million kilograms when the price rises from $3.50 to $4.50 per kilogram,then the numerical value of the price elasticity of supply is:
A)1.0
B)1.3
C)0.8
D)2.0
E)0.5

Question

Quizplus · Accepted Answer

The price elasticity of supply is calculated using the formula: (percentage change in quantity supplied) / (percentage change in price). The percentage change in quantity supplied is ((9-7)/7)*100 = 28.57%, and the percentage change in price is ((4.5-3.5)/3.5)*100 = 28.57%. Therefore, the elasticity is 28.57% / 28.57% = 1.0.

If the Quantity Supplied of Tomatoes Rises from 7 Million