Suppose, 10 boxes of facemask are being sold on $50 each and due to covid-19, supply of facemasks increase. Due to the pandemic, price increased upto $60 and there is increase of quantity of 20 percent. Find the price elasticity of supply as well as explain which kind of elasticity is it?
The price elasticity of supply is:
"Es = \\frac{12 - 10} {60 - 50} \u00d7\\frac{60 + 50} {12 + 10} = 2\/10\u00d7110\/22 = 1."
So, the supply is unit-elastic.
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