Question
Price elasticity of supply = (percentage change in quantity supplied)/(percentage change in price).In this case, the elasticity of supply = 9%/10% = 0.9. This is
Price elasticity of supply = (percentage change in quantity supplied)/(percentage change in price).In this case, the elasticity of supply = 9%/10% = 0.9. This is slightly inelastic. The dividing point between elastic and inelastic is 1.0.
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Practical Financial Management
Authors: William R. Lasher
7th edition
128560721X, 9781133593669, 1133593682, 9781285607214, 978-1133593683
