Multiple Choice
In January the price of widgets was $2.00,and Wendy's Widgets produced 80 widgets.In February the price of widgets was $2.50,and Wendy's Widgets produced 110 widgets.In March the price of widgets was $3.00,and Wendy's Widgets produced 140 widgets.The price elasticity of supply of Wendy's Widgets was
A) 0.70 when the price increased from $2.00 to $2.50 and 0.76 when the price increased from $2.50 to $3.00.
B) 0.88 when the price increased from $2.00 to $2.50 and 1.08 when the price increased from $2.50 to $3.00.
C) 1.42 when the price increased from $2.00 to $2.50 and 1.32 when the price increased from $2.50 to $3.00.
D) 1.50 when the price increased from $2.00 to $2.50 and 1.18 when the price increased from $2.50 to $3.00.
Correct Answer:

Verified
Correct Answer:
Verified
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