Question
The price of goods rises from $12 to $15. Quantity supplied increases from 25,000 to 35,000. Using the midpoint method, calculate the price elasticity of
The price of goods rises from $12 to $15. Quantity supplied increases from 25,000 to 35,000. Using the midpoint method, calculate the price elasticity of supply.
a. 0.4
b. 0.67
c. 1.5
d. 1.75
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Economics of Strategy
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer
6th edition
978-1118273630, 111827363X, 978-1118319185
