Question

. At a price of $50 for a CD player, firms are willing to produce and sell 2200 CD players. At a price of $70 for a CD player, firms are willing to produce and sell 2600 CD players. What is the price elasticity of supply in this range? (step-by-step answer)

a. 2  

b. 0.5  

c. .05   

d. 20  

e. none of the above  

Answer 1