If the price of corn goes up by $1 a bushel and the quantity supplied rises by 100 bushels, the price elasticity of supply has to be 100.
Answer the following statement true (T) or false (F)
False
Elasticity is the percentage change in quantity divided by the percentage change in price. You cannot calculate elasticity with the information given in the question because it is not given in percentage changes. We need to know the prices and quantities at which the above changes occur to calculate percentages.
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