Given:
The price of apples from $20 goes to $22 a box
In response, the supply of apples from 1200 boxes down to 1000 boxes.
To compute for the coefficient of price elasticity (midpoints approach):
Let X the elasticity of supply = percentage change in quantity supplied / percentage change in price.
Using the midpoint formula,
((1200-1000)/(1000+1200)/2))/((24-22)/(20+22)/2))
200/(2200)/2/2/(42)/2
(200/1100)/(2/21)
.1818/ 0.0952
1.91
The coefficient of price elasticity for Goldsboro's supply by the midpoints approach is 1.91.
The price elasticity is a measurement of how users respond to the prices of products and services. Commonly, demand turns when prices arise, but depending on the product and the market, how consumers respond to a price occurrence can change.
Computation of price elasticity of supply:
According to the given scenario,
The price of apples raises from $20 to $22 a box.
In consequence, the supply of apples raises from 1,000 boxes to 1200 boxes.
The formula of elasticity of supply:
[tex]\text{Elasticity of Supply}= \dfrac{\text{Percentage Change in Quantity Supplied}}{\text{Percentage Change In Price}}[/tex]
To apply the values in the given formula, we get the value of elasticity of supply.
[tex]\text{Elasticity of Supply}= \dfrac{\text{Percentage Change in Quantity Supplied}}{\text{Percentage Change In Price}}\\\\\\\text{Elasticity of Supply}=\dfrac{\dfrac{\dfrac{1,200-1,000}{1,000+1,200}}{2}}{\dfrac{\dfrac{24-22}{20+22} }{2} }[/tex][tex]\text{Elasticitiy of Supply}=\dfrac{\dfrac{200}{1,110} }{\dfrac{2}{21}} \\\\\\\text{Elasticitiy of Supply}=\dfrac{.1818}{0.0952}\\\\\\\text{Elasticitiy of Supply}= 1.91[/tex]
Therefore, the price elasticity of supply is 1.91.
To learn more about the price elasticity, refer to:
https://brainly.com/question/25706924
