What is the formula for measuring the price elasticity of supply?

• Percentage change in quantity demanded/percentage change in price
• Percentage change in quantity supplied/percentage change in price
• Percentage change in quantity supplied/percentage change in income
• Percentage change in quantity demanded/percentage change in income

b.Suppose the price of apples goes up from $20 to $22 a box. In direct response, Goldsboro Farms supplies 1,200 boxes of apples instead of 1,000 boxes. Compute the coefficient of price elasticity (midpoints approach) for Goldsboro's supply.

Instructions:Round your answer to 2 decimal places.

c.Is its supply elastic, or is it inelastic?

(Click to select)

Elastic

Inelastic