question archive Use the midpoint formula to calculate the elasticity of supply for golf balls
Use the midpoint formula to calculate the elasticity of supply for golf balls
Subject:EconomicsPrice:2.88 Bought3
Use the midpoint formula to calculate the elasticity of supply for golf balls. On one weekend a golf ball manufacturer produced 80,000 sleeves of golf ball priced at $12 a sleeve. The following weekend, the price of the sleeves was reduced to $10 and the manufacturer produced 60,000 sleeves were sold. The for golf balls is equal to:
A. 0.128
B. 0.778
C. 1
D. 1.28
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
- The answer is:
The midpoint formula for elasticity of supply is given as:
Given that;
Given the above data, the price elasticity of supply is calculated as:
The price elasticity of supply is 1.57.
