If quantity supplied is decreases by 40%due to a 60% decrease in price

1.	If quantity supplied is decreases by 40%due to a 60% decrease in price then elasticity ofsupply isa)(+)0.67b)(-) 0.6c)(+)1.5d)(-)1.5
Answer» Answer: Just DIVIDE the percentage change in the DEPENDENT variable and the percentage change in the independent one. If the latter increases by 3% and the FORMER by 1.5%, this means that elasticity is 0.5. ... Elasticity of -1 means that the TWO variables goes in opposite directions but in the same proportion.

If quantity supplied is decreases by 40%due to a 60% decrease in price then elasticity ofsupply isa)(+)0.67b)(-) 0.6c)(+)1.5d)(-)1.5

Answer»

Answer:

Just DIVIDE the percentage change in the DEPENDENT variable and the percentage change in the independent one. If the latter increases by 3% and the FORMER by 1.5%, this means that elasticity is 0.5. ... Elasticity of -1 means that the TWO variables goes in opposite directions but in the same proportion.

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If quantity supplied is decreases by 40%due to a 60% decrease in price then elasticity ofsupply isa)(+)0.67b)(-) 0.6c)(+)1.5d)(-)1.5​

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If quantity supplied is decreases by 40%due to a 60% decrease in price then elasticity ofsupply isa)(+)0.67b)(-) 0.6c)(+)1.5d)(-)1.5