Elasticity of supply: Using the data below, answer the following questions:
Close Substitutes Quantity Demanded Price Quantity Supplied
5 80 $10 120
5 100 $8 100 .
(a) Write out the midpoint formula for elasticity of supply (formula only, no numbers):
Es =
(b) Use the data from above to calculate the elasticity of supply:
Es =
=
(c) The elasticity of supply is (elastic, inelastic, unit elastic)