Economics – Supply/Elasticity WS
To find the percentage change in quantity supplied or price, use the following formula:
Subtract the new number from the original number, and divide the result by the original number.
Ignore any negative signs, and multiply by 100 to convert this number to a percentage.
Work from top down on your supply schedule or left to right on a supply curve. For the purpose of this
assignment, as you work down each supply schedule the P2 and Q2 for the previous equation will be the
new P1 and Q1 for the next equation.
E=
Percentage change in quantity supplied
Percentage change in price
Or
E=
×100
×100
The final value then determines elasticity:
 E > 1 (elastic)
 E = 1 (unit elastic)
 E < 1 (inelastic)
Directions: Indicate elasticity for each and every price. Show all work and make sure to label each value
as elastic, unit elastic, or inelastic.
1.
Price
$2.00 (P1)
$1.75
$1.50
$1.00
Amount supplied
6 (Q1)
5
4
2
2.
Price
$5.00 (P1)
$4.00
$3.00
$2.00
Amount supplied
6 (Q1)
5
4
3
3.
Price
$3.00 (P1)
$2.50
$2.00
$1.00
Amount supplied
25 (Q1)
20
15
5
4.
Price
$13.00 (P1)
$12.50
$12.00
$11.00
Amount supplied
106 (Q1)
75
50
10