Suppose the Current Price of Barley Is $70 Per Tonne

Multiple Choice

Suppose the current price of barley is $70 per tonne and at that price 100,000 tonnes are grown by a Victorian farmer. If the price of barley rises to $80 and quantity supplied increases to 130,000 tonnes then, using the midpoint method, the price elasticity of supply for barley equals

A) 1.96.
B) 13.33.
C) 26.78.
D) zero.
E) 0.51.