IF THE PRICE OF AN ITEM CHANGES BY 8% AND QUANTITY SUPPLIED CHANGES FROM 600 UNITS TO 660 UNITS, THE PRICE ELASTICITY OF SUPPLY IS
A. 0.80 B. 1.25 ✓ C. 2.00 D. 10.00 The answer to the question is: B. 1.25 The price elasticity of supply measures the responsiveness of the quantity supplied of a good to a change in its price. It is calculated as…
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