When the price of paper increases from $250 to $257 per ton, the quantity supplied increases from 350 to 390 tons per day. The price elasticity of supply is:
In math, knowing the definition of related terms can help solve a large number of problems.
For example, if we know the definition of price elasticity, we can solve the above problem.
Definition:
The elasticity is represented in numerical form, and is defined as the percentage change in the quantity supplied divided by the percentage change in price.