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The following data relate to the supply schedule of a product.

Price ($ Per Unit) Quantity Supplies (Units Per Week)
5 100
10 200
15 250
20 300
25 350
30 500
Over which of the following price ranges is the price-elasticity of supply greater than 1?

(A) $25 to $30
(B) $10 to $15
(C) $20 to $25
(D) $15 to $20

Respuesta :

lazicah

Answer:

A

Explanation:

The formula for price elasticity of supply is:

Percentage change in quantity supplied ÷ percentage change in price

From $25 to $30

% change in quantity = (500 - 350)/350 = 42.86%

% change in price = (30 - 25)/25 = 20%

PES = $42.86/$20 = 2.143,

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