Forums Economics Assignment Help GCSE What is the price elasticity of supply of grapes in this case?

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  • #16056
    nammy
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    A 10% increase in the price of grapes leads to a 4% increase in the quantity supplied. What is the price elasticity of supply of grapes in this case?
    A. -2.5
    B. +0.4
    C. +2.5
    D. +4.0

    #16057
    nammy
    Participant

    Answer: B- +0.4
    Reason: Percentage change in quantity supplied divided by the percentage change in price is the elasticity of supply

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