Holding All Else Constant,if a Pencil Manufacturer Increases Production by 25

question 159

Multiple Choice

Holding all else constant,if a pencil manufacturer increases production by 25 percent when the market price of pencils increases from $0.50 to $0.60,what is the price elasticity of supply,using the midpoint method

• A)elastic, since elasticity is equal to 1.38
• B)inelastic, since elasticity is equal to 1.381
• C)inelastic, since elasticity is equal to 0.72
• D)elastic, since elasticity is equal to 0.72

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