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Social Science Clinic => Economics => Macroeconomics => Topic started by: meganh99 on Nov 23, 2022

Title: Mathematical Calculation of Price Elasticity of SupplyThe table shows the quantity supplied of video ...
Post by: meganh99 on Nov 23, 2022

Mathematical Calculation of Price Elasticity of Supply

The table shows the quantity supplied of video games at various prices.

Point	Price	Quantity Supplied
A	51	675​

B

52

720​

C

53

765​

D

54

810​

E

55

855​

Using the midpoint formula, the price elasticity of supply between B and C is ________. The supply of the good is ________. Round your final answer to two decimal places.
◦ 3.25, inelastic
◦ 3.18, inelastic
◦ 3.18, elastic
◦ 3.25, elastic

Title: Mathematical Calculation of Price Elasticity of SupplyThe table shows the quantity supplied of video ...
Post by: hillard sane on Nov 23, 2022

3.18, elastic

The price elasticity of supply is the percent change in quantity supplied divided by the percent change in price.

Using the midpoint formula, the percent change = 100*(new - old)/((new+old)/2)

The percent change in quantity supplied between B and C =

The percent change in price between B and C = 100*(53-52)/((53+52)/2) = 1.9047619

Therefore, the price elasticity of supply = 6.06060606/1.9047619 = 3.18. At this point, the supply of the good is elastic.