The price of elasticity of suppy is 1.2, and the price increases by 3 percent. As a result, the quantity supplied will increase by _____ percent.

Using the price elasticity of supply, we will calculate the increase in the quantity supplied

Increase in quantity supplied = % increase in the price * Price elasticith of supply

Increase in quantity supplied = 3% * 1.2

Increase in quantity supplied = 3.6%