question archive The price of raisins drops from $18 to $5 per kilogram
The price of raisins drops from $18 to $5 per kilogram
Subject:EconomicsPrice:2.88 Bought3
The price of raisins drops from $18 to $5 per kilogram. As a result of this change the quantity supplied drops from 291 to 191 kilograms of raisins. What is the price elasticity of supply?
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The price elasticity of supply can be found as follows.
PES=ΔQsΔPs=291−191191∗10018−518∗100PES=0.72
