I need help Suppose the price of apples goes up from $20 to $23 a box. In direct

Question

I need help Suppose the price of apples goes up from $20 to $23 a box. In direct response, Goldsboro Farms supplies 1300 boxes of apples instead of 1200 boxes. Computer the coefficient of price elasticity (midpoint approach) for Goldsboro supply I need help Suppose the price of apples goes up from $20 to $23 a box. In direct response, Goldsboro Farms supplies 1300 boxes of apples instead of 1200 boxes. Computer the coefficient of price elasticity (midpoint approach) for Goldsboro supply I need help Suppose the price of apples goes up from $20 to $23 a box. In direct response, Goldsboro Farms supplies 1300 boxes of apples instead of 1200 boxes. Computer the coefficient of price elasticity (midpoint approach) for Goldsboro supply

Explanation / Answer

Using Midpoint approach

Percentage change in Quantity Supplied =(1300-1200)/((1300+1200)/2)=0.08

Percentage change in price=(23-20)/((23+20)/2)= 0.139534884

Coefficient of price elasticity of supply= Percentage change in Quantity Supplied/ Percentage change in price

Coefficient of price elasticity of supply=0.08/0.139534884=0.573333

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