Which of the following formulas should be used to calculate price elasticity of supply?

Choose 1 answer:
(A) $\frac{\% ext { change in } P}{\% ext { change in } Q_{S}}$
(B) $\frac{ ext { change in } P}{ ext { change in } Q_{S}}$
(C) $\frac{ ext { change in } Q_{S}}{ ext { change in } P}$
(D) $\%$ change in $Q_{s} imes$ change in $P$
(巨) $\%$ change in $Q_{S}$

Question

Which of the following formulas should be used to calculate price elasticity of supply?

Choose 1 answer:
(A) $\frac{\% 	ext { change in } P}{\% 	ext { change in } Q_{S}}$
(B) $\frac{	ext { change in } P}{	ext { change in } Q_{S}}$
(C) $\frac{	ext { change in } Q_{S}}{	ext { change in } P}$
(D) $\%$ change in $Q_{s} 	imes$ change in $P$
(巨) $\%$ change in $Q_{S}$

Accepted Answer

∻Solution∻ ‖ a ⋮ Price Elasticity of Supply Formula: The price elasticity of supply (PES) measures the responsiveness of the quantity supplied of a good to a change in its price. The formula for PES is given by the percentage change in quantity supplied divided by the percentage change in price. ‖ ‖ b ⋮ Correct Formula: From the options provided, the correct formula for calculating the price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price, which is represented by option (A) $ \frac{\% ext{ change in } Q_{S}}{\% ext{ change in } P} $. ‖ ∻Answer∻ ⚹ (A) $ \frac{\% ext{ change in } Q_{S}}{\% ext{ change in } P} $ ⚹ ∻Key Concept∻ ⚹ Price Elasticity of Supply ⚹ ∻Explanation∻ ⚹ The price elasticity of supply is calculated by dividing the percentage change in quantity supplied by the percentage change in price. ⚹◊What factors can affect the price elasticity of supply in the market⍭ Generate me a similar question◊

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