Question

If 5% increase in price result in a 3% increase in quality supplied, the elasticity of supply is _______. Options:(1) 1.20 (2)0.6 (3) 1.66 (4) 0.3​

Answer 1

(1) 1.20

Elasticity of supply measures the responsiveness to the supply of a good or service after a change in its market price.

3/100 x 5/100

= 1.20

Answer 2

Answer:

option - 3

Explanation:

1.66

the elasticity of the supply must be found by diving both percentage 5 percent by 3 percent and then we will be able to find elasticity

• 5 percent / 3 percent = 1.66

so the answer is 1.66

FINAL ANSWER- 1.66