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Unformatted text preview: Percentage change in price For example suppose that an increase in price from 6.00 to 6.30 raises the amount produced from 12000 to 13500. Percentage change in price = (6.30 - 6.00)/6.00*100 = 10 percent. Similarly we calculate the percentage change in quantity supplied = (13,500 - 12,0000/12000*100 =15 percent. Price elasticity of supply = 15 percent = 1.5 10 percent 3.b.1 A percentage increase in price leads to a larger percentage increase in quantity supplied. 3.b.2 A percentage increase in price leads to a smaller percentage increase in quantity supplied. 3.b.3 3.b.4 A percentage increase in price leaves the quantity supplied unchanged....
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- Spring '07