Helen's Honey Hut supplies 20 jars of honey per week when the price of honey is $6 per jar and supplies 30 jars per week when the price of is $8 per jar, so the price elasticity of supply over this price range is 1.4.

Question

Quizplus · Accepted Answer

The price elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price. In this case, the quantity supplied increases by 50% (from 20 to 30 jars) when the price increases by 33.3% (from $6 to $8). Therefore, the price elasticity of supply is 50% / 33.3% = 1.5.

Helen's Honey Hut Supplies 20 Jars of Honey Per Week