The price elasticity of supply for a good is $2$. The good’s price then decreases by $10\%$. What change occurs in quantity supplied?
- AIt falls by $0.2\%$.
- BIt falls by $20\%$.
- CIt increases by $0.2\%$.
- DIt increases by $20\%$.
Economics 0455 · IGCSE · Price elasticity of supply (PES)
The price elasticity of supply for a good is $2$. The good’s price then decreases by $10\%$. What change occurs in quantity supplied?