Suppose the current price of copper is $3 per pound and the quantity supplied is 200 pounds per day
If the price of copper falls to $2.50 per pound, the quantity supplied drops to 180 pounds per day. Use the midpoint formula to calculate the price elasticity of supply for copper.
The price elasticity of supply for copper = (20 / 190 ) / (0.5 / 2.75 ) = (0.1053 / 0.1818 ) = 0.58.
Economics
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