Elasticity

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Question 19
Easy

A boutique manufacturer of artisanal leather satchels originally supplied 2,500 units per month when the market price was £120 per unit. Following an increase in market demand, the price rose to £150 per unit, and the manufacturer increased the quantity supplied to 2,875 units per month.

What is the price elasticity of supply (PES) for the artisanal leather satchels over this price range?

0.600.600.60

0.750.750.75

1.671.671.67

1.251.251.25

Elasticity Questions

  1. A Level
  2. /Economics
  3. /Elasticity