A 5 percent increase in the price of corn flour that results in a 15 percent increase in the quantity supplied yields a price elasticity of supply for corn flour of:
a. 2.0.
b. 2.5.
c. 3.0.
d. 3.5.
Answer: C
A 5 percent increase in the price of corn flour that results in a 15 percent increase in the quantity supplied yields a price elasticity of supply for corn flour of:
a. 2.0.
b. 2.5.
c. 3.0.
d. 3.5.
Answer: C