At a price of $200, a cell phone company manufactures 300,000 phones. At a price of $150, the company produces 200,000 phones. What is the price elasticity of supply

1.33

Explanation:

At a price of $200, a cell phone company manufactures 300,000 phones

At a price of $150, the company produced 200,000 phones

P1= $200 , Q1= 300,000 units

P2= $150 , Q2= 200,000 units

Price elasticity = change in quantity / change in price

Change in quantity= Q2-Q1/(Q2+Q1/2)

= 200,000-300,000/(200,000+300,000/2)

= -100,000/500,000/2

= -100,000/250,000

= -0.4

Change in price= P2-P1/(P2+P1/2)

= 150-200/(150+200/2)

= -50/(350/2)

= -50/175

= -0.3

Price elasticity= -0.4/-0.3

= 1.33

Hence the price elasticity is 1.33

answer; coefficient of correlation;

answer; experimentation;