Answer:
2.5
Explanation:
P1=$200
P2=$300
S1=100000
S2=300000
The percentage change in price is:

The percentage change in supply is:

The price elasticity of supply is given by:

The price elasticity of supply is 2.5.
Answer:
We should discontinue Product B
Explanation:
We should check if Product B generates a contribution or not:
We subtract from the sales revenues the variable cost:
revenue 39,500
variable cost of goods sold (25,500)
variable selling expenses <u> (16,500) </u>
Contribution (2,500)
<em>As the contribution is negative, we should discontinue </em>Product B as is less expensevely to stop production than continue.
Answer:
when sales revenue exceed costs
Explanation: