When a product's price changes from $26 to $10 and its quantity supplied changes from 200 to 100 units, the price elasticiy of supply equals:

A) 6.25

B) 1.50

C) 0.75

D) 0.16

The calculated value of price elasticity of supply is option C) 0.75.

The percentage change in price is given by:

• = (Final price after the decrease - initial price) / initial price
• = ($10 - $26) / $26
• = (-$16) / $26
• = -61.54%

The percentage change in quantity is given by:

• = (Final quantity after the decrease - initial quantity) / initial quantity
• = (100 units - 200 units) / 200 units
• = (-100) / 200
• = -50%

The price elasticity of supply is given by:

• = Percentage change in quantity / percentage change in price
• = (-50%) / (-61.54%)
• = 0.81 (which is closest to option C)