question archive If the price elasticity of supply is 1
If the price elasticity of supply is 1
Subject:EconomicsPrice:2.88 Bought3
If the price elasticity of supply is 1.2, and price increased by 5%, quantity supplied would be?
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We know that:
But;
Price elasticity of supply = 1.2
Percentage change in price = 5%
Hence,
Percentage change in quantity supplied = 1.2 * 5% = 6%
