Answer:
C) 0.60
Explanation:
price elasticity of supply using the midpoint formula = {(S2 - S1) /[(S2 + S1)/2]} / {(P2 - P1) /[(P2 + P1)/2]}
= {(30 - 20) /[(30 + 20)/2]} / {(20 - 10) /[(20 + 10)/2]} = (10 / 25) / (10 /15) = 0.4 / 0.67 = 0.6
This means that the supply is price inelastic since a large increase in price will cause a smaller increase in the quantity supplied.