What is approximate value of the price elasticity of supply

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Reference no: EM13852550

Suppose that an increase in the price of carrots from $1.30 to $1.80 per pound increases the quantity of carrots the carrot farmers produce from 1.2 million pounds to 1.6 million pounds. Using the midpoint method, what is the approximate value of the price elasticity of supply?

a. 0.67

b. 0.89

c. 1.00

d. 1.13

Reference no: EM13852550

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