A 20 percent increase in the price of skis induces ski manufacturers to increase production of skis

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A 20 percent increase in the price of skis induces ski manufacturers to increase production of skis by 10 percent in the short run. In the long run, other things being equal, the 20 percent price increase generates a production increase of 40 percent. What is the short-run price elasticity of supply? What is the long-run price elasticity of supply?
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Economics Today

ISBN: 978-0132554619

16th edition

Authors: Roger LeRoy Miller

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