The price of paint increased by 18 %. As a result the quantity of paint produced increases by 27 %.Calculate the price elasticity of paintYou can conclude that the supply of paint is priceOElasticOlnelasticOUnitary Elastic

Answered: The price of paint increased by 18 %.…

The price of paint increased by 18 %. As a result the quantity of paint produced increases by 27 %. Calculate the price elasticity of paint

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The price of paint increased by 18 %. As a result the quantity of paint produced increases by 27 %.
Calculate the price elasticity of paint
You can conclude that the supply of paint is price
OElastic
Olnelastic
OUnitary Elastic

Expert Solution

Step 1

Give Increase in price = 18 %

Change in supply of paint = 27 %

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Solved in 2 steps

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