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Agriculture Economics QUESTION #11888
Question 1
The price elasticity of supply is calculated as:
  • $E_s = \dfrac{\%\Delta P}{\%\Delta Q_s}$
  • $E_s = \dfrac{\%\Delta Q_s}{\%\Delta P}$✔️
  • $E_s = \%\Delta Q_s \times \%\Delta P$
  • $E_s = \dfrac{Q_s}{P}$
Correct Answer Explanation
Price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price: $E_s = \dfrac{\%\Delta Q_s}{\%\Delta P}$.