Calculating Price Elasticity of Supply

The video tutorial explains the concept of price elasticity of supply and how to calculate it using a simple three-step process. It covers the formula for price elasticity, the meaning of proportionate change, and provides examples with both small and large numbers to illustrate the calculation process. The tutorial emphasizes the importance of understanding the steps and applying them to different scenarios.

What is the formula for calculating the price elasticity of supply?

Explain the concept of proportionate change in the context of price elasticity of supply.

Describe the three-step process for calculating price elasticity of supply.

In the example provided, what were the initial supply and price before the changes?

How do you calculate the change in quantity supplied and the change in price?

What was the final price elasticity of supply calculated in the example?

Discuss the importance of understanding the price elasticity of supply in economics.