There are several ways to calculate the elasticity of supply. With this given data, the best way to calculate the elasticity is as follows. Let initial price be P¡ and new price is P. Let initial quantity be Q1 and new quantity P = 10 P2 = 20 Q1 = 100 Q2 120 |E,]= % change in quantity supplied % change in price Q2-Q1 |Es= P-P (P2+P1) 120-100 (120+100) |E,|= 20-10 ( 20+10) 20 |E,]= 220 /2 10 30 20 110 |E,|= 10 15 |E,]= 20 TIO 15 10 3 |E,|= 0. 27 The calculated elasticity of supply is 0.27 which is less than 1. It can be said that the supply is inelastic.
There are several ways to calculate the elasticity of supply. With this given data, the best way to calculate the elasticity is as follows. Let initial price be P¡ and new price is P. Let initial quantity be Q1 and new quantity P = 10 P2 = 20 Q1 = 100 Q2 120 |E,]= % change in quantity supplied % change in price Q2-Q1 |Es= P-P (P2+P1) 120-100 (120+100) |E,|= 20-10 ( 20+10) 20 |E,]= 220 /2 10 30 20 110 |E,|= 10 15 |E,]= 20 TIO 15 10 3 |E,|= 0. 27 The calculated elasticity of supply is 0.27 which is less than 1. It can be said that the supply is inelastic.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 28CTQ: Would you expect supply to play a more significant role in determining the price of a basic...
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Please write the attached text in handwriting with the writing (masa tarabeh) at the beginning of the page
![There are several ways to calculate the
elasticity of supply. With this given data, the
best way to calculate the elasticity is as
follows.
Let initial price be P¡ and new price is P.
Let initial quantity be Q1 and new quantity
P = 10
P2 = 20
Q1 = 100
Q2
120
|E,]=
% change in quantity supplied
% change in price
Q2-Q1
|Es|=
P-P
(P2+P1) 2
120-100
(120+100)
|E,|=
20-10
( 20+10)
20
|E,|=
220
/2
10
30
2
20
110
|E,|=
10
15
20
TIO
15
|E,]=
|E,\= f
3
0. 27
The calculated elasticity of supply is 0.27
which is less than 1. It can be said that the
supply is inelastic.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F90dbfdb4-542c-4a3d-8c8f-5eb7f1577003%2F80038539-9e3d-43f6-a830-14b3c56ee0b9%2F5c1gfgp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:There are several ways to calculate the
elasticity of supply. With this given data, the
best way to calculate the elasticity is as
follows.
Let initial price be P¡ and new price is P.
Let initial quantity be Q1 and new quantity
P = 10
P2 = 20
Q1 = 100
Q2
120
|E,]=
% change in quantity supplied
% change in price
Q2-Q1
|Es|=
P-P
(P2+P1) 2
120-100
(120+100)
|E,|=
20-10
( 20+10)
20
|E,|=
220
/2
10
30
2
20
110
|E,|=
10
15
20
TIO
15
|E,]=
|E,\= f
3
0. 27
The calculated elasticity of supply is 0.27
which is less than 1. It can be said that the
supply is inelastic.
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