Suppose When the Price of Novels Goes from $15 to $20

question 85

Multiple Choice

Suppose when the price of novels goes from $15 to $20 per book, production increases from 760 million books to 840 million books per year. Using the mid-point method, what is the price elasticity of supply?

• A) 0.77
• B) 2.85
• C) 2.0
• D) 0.35