What is the formula for measuring the price elasticity of supply?
Es = (Click to select) percentage change in quantity supplied / percentage change in price percentage change in quantity demanded / percentage change in price percentage change in quantity demanded / percentage change in income
Suppose the price of apples goes up from $23 to $25 a box. In direct response, Goldsboro Farms supplies 1500 boxes of apples instead of 1400 boxes. Compute the coefficient of price elasticity (midpoints approach) for Goldsboro’s supply.
Instructions: Round your answer to two decimal places.
Es =
Is its supply elastic, or is it inelastic?
Supply is (Click to select) inelastic elastic .