Suppose that the price of product X rises by 12 percent and the quantity supplied of X increases by 15 percent. The coefficient of price elasticity of supply for good X is Multiple Choice negative, and therefore X is an inferior good. positive, and therefore X is a normal good. more than 1, and therefore supply is elastic. less than 1, and therefore supply is inelastic.

The formula: Elasticity of supply =% change in quantity% change in price

Answered: Suppose that the price of product X…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 2SQ

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Suppose that the price of product X rises by 12 percent and the quantity supplied of X increases by 15 percent. The coefficient of price elasticity of supply for good X is

Multiple Choice

negative, and therefore X is an inferior good.
positive, and therefore X is a normal good.
more than 1, and therefore supply is elastic.
less than 1, and therefore supply is inelastic.

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