Economics · May / June 2017 · Paper 12 · Question 4

In response to an increase in price from $5 per kilo to $6 per kilo a chicken farmer increased supply from 400 kilos to 500 kilos per week. What is the price elasticity of supply?

1. A0.8
2. B0.9
3. C1.2
4. D1.25

As printed in the paper