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Combinations of price and quantity supplied

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1. Calculate the price elasticity of supply for each of the following combinations of price and quantity supplied. In each case, determine whether supply is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic in each case. Please give details to your numeric answers.

a. Price falls from $2.25 to $1.75; quantity supplied falls from 600 units to 400 units

b. Price falls from $2.25 to $1.75; quantity supplied falls from 600 units to 500 units.

Reference no: EM131237208

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