Calculate the elasticity of supply for salt

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Reference no: EM13188291

Suppose that the price of salt rises from 15 cents to 17 cents a kilogram. The quantity demanded decreases from 525 kilograms to 475 kilograms per month, and the quantity supplied increases from 525 kilograms to 600 kilograms per month. (Use the midpoint formula in calculating elasticities.)
a. Calculate the elasticity of supply for salt.
b. Is the supply of salt price-elastic or price-inelastic?

Reference no: EM13188291

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