The Following Data Relate to the Supply Schedule of a Product

Multiple Choice

The following data relate to the supply schedule of a product. Over which price range is the elasticity of supply greater than 1?

A) $10 to $15
B) $15 to $20
C) $20 to $25
D) $25 to $30
Over the price range $25 to $30,the change in quantity is (350 - 500) /(300 + 500) = 0.188 and the change in price is (25 - 30) /(25 + 30) = 0.091.Thus,elasticity is 0.188/0.091 = 2.07,which is greater than1.