when the price elasticity of good is 1.1 and the price of it increased by 5%, how much would the quantity supplied of it change?

Answer 1

E=1.1

%Δ P= 5%

%Δ Q = ?

E= %Δ Q / %Δ P

1.1 = %Δ Q / 5% multiply whole equation by 5

1.1 · 5 = %Δ Q

%Δ Q = 5.5%

Quantity supplied will increase by 5.5%