Determining that the supply is elastic or inelastic

Reference no: EM131789683

Question: If a coal mining company would be willing to produce and sell 9 million tons a year at $150/ton, but would be willing to produce and sell 11 million tons a year at $250/ton,

- calculate its price elasticity of supply.

- Is this supply elastic or inelastic?

- If the price of coal were to remain at $250/ton over the next ten years (with no inflation in general prices), is this firm's supply curve likely to become more or less elastic?

- Explain why.

Reference no: EM131789683

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