Calculate the price elasticity of supply in the following examples, then determine if supply is relatively elastic or inelastic, or perfectly elastic or inelastic.
When the price of a pen increased from $3.00 to $4.00, the quantity supplied by a firm increased from 300 to 500 pens. The price elasticity of supply is _____ Round answer to two decimal places.
In this case, the price elasticity of supply is:
â–¼
relatively elastic
perfectly inelastic
relatively inelastic
perfectly elastic
When the price of bottled water increased from $2.00 to $2.25, the quantity supplied by a firm increased from 200 to 216 bottles. The price elasticity of supply is ________
In this case, the price elasticity of supply is:
â–¼
perfectly elastic
perfectly inelastic
relatively inelastic
relatively elastic
Even though the price of an acre of land increased from $6,000 to $10,000, the quantity supplied did not change. The price elasticity of supply is _______
In this case, the price elasticity of supply is:
â–¼
perfectly elastic
perfectly inelastic
relatively inelastic
relatively elastic