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19 June, 01:36

Suppose when the price of jean-jackets increased by 10 percent, the quantity supplied increased by 16 percent. Based on this information the price elasticity of supply of jean-jackets is

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  1. 19 June, 03:26
    0
    1.6

    Explanation:

    The formula and the computation of the price elasticity of supply is shown below:

    Price elasticity of supply = (Percentage change in quantity supplied) : (percentage change in price)

    where,

    Percentage change in quantity supplied = 16%

    And, the percentage change in price = 10%

    So, the price elasticity of supply is

    = 16% : 10%

    = 1.6
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