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Claudia Gallifuoco
on Dec 08, 2024

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At a price of $4, quantity supplied is 100, and at a price of $6, quantity supplied is 120. Using the midpoint formula, the price elasticity of supply is ________ and supply is ________.

A) 0.1; inelastic
B) 0.45; inelastic
C) 2.2; elastic
D) 10; elastic

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as the percentage change in quantity demanded divided by the percentage change in price.

Midpoint Formula

A method for calculating the percentage change in a variable by dividing the change by the average of the initial and final values, often used in economics to measure elasticity.

  • Gain an understanding of how supply elasticity functions and its importance within market fluctuations.
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Danielle BorelliDec 12, 2024
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