Question
Suppose that the price of product X rises by 20 percent and the quantity supplied of X increases by 15 percent. The coefficient of price elasticity of supply for good X is?
Answers
Harold the Great
i took this class last semester and if i remember correctly the equation for this was
PES = percent change in quanitiy supplied/ percent change in price
so what we have here is 0.15/0.20 = a coefficent of 0.75 which the supply is inelastic
hope i helped and if this was correct
PES = percent change in quanitiy supplied/ percent change in price
so what we have here is 0.15/0.20 = a coefficent of 0.75 which the supply is inelastic
hope i helped and if this was correct