If price of yams decreases from N15.00 per tuber to N13.50 and the quantity supplied decreases by 20%. What is the elasticity of supply?

By: |Published on: Oct 20|Categories: Economics JAMB| 0 comments

A. 2.00
B. 0.50
C. 1.50
D. 1.00

Correct Answer:

Option B – 0.50

Explanation

Percentage change in price divided by % change in quantity supply 15.00-13.50=1.5

1.5 ÷13.50 x (100)
=11.11% ÷ 20%= 0.1111 ÷ 0.2
0.55555..
=0.5ans

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