The accompanying table shows how many Veggie Delite sandwiches Subway might be willing to sell each day at two different prices. Using the midpoint formula, calculate the price elasticity of supply when price increases from $5.00 to $7.50. Is the price elasticity of supply relatively elastic or inelastic? Suppose that Subway wishes to analyze what happens annually instead of daily. What would happen to its estimated supply curve; would it become relatively steeper or flatter?

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Price per sandwich $5.00 $7.50 Quantity supplied 200,000 210,000