Can someone explain this to me. Also a visual of why would be helpful. Suppose t

Question

Can someone explain this to me. Also a visual of why would be helpful.

Suppose the price elasticity of supply for dog biscuits is 08 in the short run and 14 in the long run. If an increase in the demand for dog biscuits causes the price of dog biscuits to increase by 15, then the quantity supplied of dog biscuits will increase by about X· 18.8% in the short run and 167% in the long run. 23% in the short run and 29 in the long run. 0.05% in the short run and 009% in the long run. 12% in the short run and 21 in the long run.

Explanation / Answer

Answer

Price elasticity of supply=%change in quantity/%change in price

for the short run

0.8=%change in Quantity/15

%change in quantity=15*0.8=12%

in the long run

%change in quantity=1.5*14=21%

option fourth

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