Helen's Honey Hut supplies 20 jars of honey per week when the price of honey is $6 per jar and supplies 30 jars per week when the price of is $8 per jar, so the price elasticity of supply over this price range is 1.4.

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Marshall Berman · Accepted Answer

Final Answer : True, Explanation :  The price elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price. In this case, the quantity supplied increases by 50% (from 20 to 30 jars) when the price increases by 33.3% (from $6 to $8). Therefore, the price elasticity of supply is 50% / 33.3% = 1.5.

Helen's Honey Hut supplies 20 jars of honey per week when the price of honey is $6 per jar and supplies 30 jars per week when the price of is $8 per jar, so the price elasticity of supply over this price range is 1.4.

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