When the price of paper increases from $250
to $256
per ton, the quantity supplied increases from 250
to 270
tons per day. The price elasticity of supply is nothing
.
(Enter your response rounded to two decimal places.)
1 answer
Price Elasticity of Demand. The first law of demand states that as price increases, less quantity is demanded. This is why the demand curve slopes down to the right. Because price and quantity move in opposite directions on the demand curve, the price elasticity of demand is always negative.