Answer to Question #142711 in Economics for Dylan

Question

a Using the information provided, estimate the price elasticity of supply of
Central American robusta coffee at the end of 2013

Answer 1

$$E=\frac {\varDelta Q}{\varDelta p}$$

Since the supply volume decreased by 20%, and the price increased by 15%, we get

$$E=\frac {0.8}{1.15}=0.7$$