From the table above, Calculate the price elasticity of supply
The elasticity of supply = % change in quantity supplied /%change in price
First, we calculate the individual change in supply and price. hence we have:
For supply we have: ∆Qs/Old Qs x 100
=(24 - 20 )/20 x 100
For price we have: ∆P/Old price x 100
%∆Qs/%∆price
