Economics · May / June 2021 · Paper 11 · Question 8

In response to an increase in price from $5 per kilo to $6 per kilo, a 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