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CAn someone please help me how to find the price elasticity of supply between:
1. P=$10 and P=$8
2.P=$8 and P=$6

This is the only information i got:
Price Quantity Supplied
10 50
8 40
6 30
4 20
2 10
0 0

Thanks for everyone who helped!!!

2007-02-23 05:18:13 · 1 answers · asked by CM 1 in Social Science Economics

1 answers

Price elasticity of supply is calculated % change in quantity/ % change in price. So, for the first one it is:

((10-8)/10)/((50-40)/50)=20%/20%=1

For the second, it is:

((8-6)/8)/((40-30)/30)=25%/25%=1.

In both instances, the price elasticity of supply is 1.

2007-02-23 05:31:54 · answer #1 · answered by theeconomicsguy 5 · 0 0

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