Instructions: For all numeric response options, round your answer to 2 decimal places.
a. Using the midpoint method, what is the price elasticity of supply starting at a price of $40 per umbrella and moving to a price of $60 per umbrella?
b. Using the midpoint method, when the price of umbrellas falls from $100 per umbrella to $80 per umbrella, the decrease in price is a % decrease. The decrease in quantity supplied is a % decrease. Therefore, the elasticity of supply is .
c. If the elasticity of supply for umbrellas is 1.1, then a decrease in the price of umbrellas of 20% will (Click to select)increasedecrease the quantity supplied by %
rev: 03_31_2016_QC_CS-37965