Use this definition:
PEoS = (% Change in Quantity Supplied)/(% Change in Price)
= 400%/100% = __?
If an increase in price from $1 to $2 per unit leads to an increase in quantity supplied from 20 to 100 units
then the value of price elasticity of supply is.
a. 0.38
b. 2
c. 2.67
d. 4
e. 8
5 answers
the answer is 2 (b) thanks!
It seems to me that it is 4 (d)
The teacher verified that the answer is b not d.
The price elasticity of demand for cigarettes is estimated to be (-.4) and the income elasticity is about (+5).
a- Suppose the government impose a tax on cigarettes so the price rises by 10%. Estimate the effect this price increase will have on cigarettes consumption and consumer spending on cigarettes. (both in percentage terms)
a- Suppose the government impose a tax on cigarettes so the price rises by 10%. Estimate the effect this price increase will have on cigarettes consumption and consumer spending on cigarettes. (both in percentage terms)
1 answer