Calculate the price elasticity of supply for this producer

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Reference no: EM131003014

When the price of pine sawtimber in South Carolina increased from $30 per ton to $32 per ton, the quantity one producer supplied increased from 2000 tons per month to 2100 tons per month.

a. Calculate the price elasticity of supply for this producer. Show your work

b. Is supply for lumber elastic or inelastic for this producer?

Reference no: EM131003014

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