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1 year ago

The price elasticity of supply is0.9 , and price increases by10 percent. As a result, the quantity supplied will increase by

Business

1 answer:

Darya [45]1 year ago

6 0

When price increases by 10 percent, the quantity supplied increases by nine percent.

<h3>What is the percentage increase in the quantity supplied?</h3>

Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good. Price and quantity supplied have a positive relationship.

If the value of the price elasticity of supply is less than one, it means that supply in inelastic. Supply is inelastic if a small change in price has little or no effect on quantity supplied.

Price elasticity of supply = percentage change in quantity supplied / percentage change in price

percentage change in quantity supplied = percentage change in price X price elasticity of supply

0.9 x 10 = 9%

To learn more about supply elasticity, please check: brainly.com/question/26634801

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The price elasticity of supply is0.9 ​, and price increases by10 percent. As a​ result, the quantity supplied will increase by

The price elasticity of supply is0.9 , and price increases by10 percent. As a result, the quantity supplied will increase by