For a good, price increases by 25% and quantity supplied increases by 50%. What

Question

For a good, price increases by 25% and quantity supplied increases by 50%. What is the supply elasticity?

Options:

A . 0.5

B . 1

C . 2

D . 4

Answer: Option C
:
C

ϵ_{s} = \frac{% change in quantity}{% change in price} = \frac{50}{25} = 2

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