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?
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Correct Answer: Option B
Explanation:
percentage change in price divided by % change in quantity supply 15.00-13.50=1.5
1.5 x (100)
=11.11% 20%= 0.1111 0.2
0.55555..
=0.5
percentage change in price divided by % change in quantity supply 15.00-13.50=1.5
1.5 x (100)
=11.11% 20%= 0.1111 0.2
0.55555..
=0.5