When Commonwealth Edison (electric utility) needs more revenues, it petitions the Illinois Commerce Commission to allow it to raise its rates. What does this tell you about the type of price elasticity of demand within this price region for Commonwealth Edison Service?
Suppose that a 20% decrease in the price of coffee leads to a 15% decrease in the quantity of coffee supplied. Compute and give the value of the price elasticity of supply. Determine if supply is price elastic, price inelastic, or unit-elastic.