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AP® Microeconomics

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Elasticity of Supply for Market

APMICR-8ESJXL

The computer market includes two manufacturers, Peach and Kiwi. When the price in the market is $100, Peach will produce 100 computers and Kiwi will produce 200.

When the price rises to \$200, Peach will produce 200 computers, and Kiwi will produce 300.

When the market price increases from \$100 to \$200, what is the market elasticity of supply using the midpoint formula?

A

1.33

B

0.6

C

0.75

D

0.8

E

1