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My name is Ann [436]
2 years ago
14

Suppose that an increase in the price of melons from $0.50 to $1.50 per pound increases the quantity of melons that melon farmer

s produce from 2 million pounds to 4 million pounds. The price elasticity of supply in this case indicates that supply is Group of answer choices
Business
1 answer:
zaharov [31]2 years ago
4 0

Answer: elastic

Explanation:

The price elasticity of supply will be:

The percentage change in price will be:

= (1.50 - 0.50)/0.50 x 100

= 1.00/0.50 × 100

= 200

The percentage change in quantity will be:

= (4 -2)/2 x 100

= 2/2 × 100

= 100

Elasticity = % change in quantity/% Change in Price = 200/100 = 2

Since elasticity = 2, this indicates supply is elastic as it's greater than 1.

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3 years ago
Fiedler's contingency theory of leadership suggests that leaders should be placed in leadership situations that best fit with th
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