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The formula for calculating the price elasticity of supply is:
  • a)
    Percentage change in quantity supplied / Percentage change in price
  • b)
    Percentage change in price / Percentage change in quantity supplied
  • c)
    Price / Quantity supplied
  • d)
    Quantity supplied / Price
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
The formula for calculating the price elasticity of supply is:a)Percen...
The price elasticity of supply is calculated by dividing the percentage change in price by the percentage change in quantity supplied. This formula helps measure the responsiveness of supply to changes in price.
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The formula for calculating the price elasticity of supply is:a)Percentage change in quantity supplied / Percentage change in priceb)Percentage change in price / Percentage change in quantity suppliedc)Price / Quantity suppliedd)Quantity supplied / PriceCorrect answer is option 'B'. Can you explain this answer?
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