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27 August, 05:05

When the increase in price for a new video game is 10%, the increase in quantity supplied of that new video game is 60%. What is the price elasticity of supply for that video game?

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  1. 27 August, 06:33
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    Price elasticity of supply is 6.

    Explanation:

    Price elasticity of supply measures the responsiveness of supply to the change in the price of the product. We can calculate the price elasticity by following formula:

    Price elasticity to supply = % Change in supply / % change in price

    Price elasticity to supply = 60% / 10%

    Price elasticity to supply = 6
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