a-tech-company-increases-the-price-of-its-software-from-100-to-120-and-the-numbe

Question

A tech company increases the price of its software from $$100 to 120$$, and the number of licenses supplied rises from 2,000 to 2,600. Calculate the price elasticity of supply and classify the supply as elastic, inelastic, or unit elastic.

Accepted Answer

1.44, elastic

Answer

1.00, unit elastic

Answer

0.50, inelastic

Answer

0.87, inelastic

A tech company increases the price of its software from \$100 to \$120, and the number of licenses supplied rises from 2,000 to 2,600. Calculate the price elasticity of supply and classify the supply as elastic, inelastic, or unit elastic.