When the price of cell phones increased from 18 to 20 produc

When the price of cell phones increased from $18 to $20, production increased from 1,200 to 2,800 per month You can conclude that the supply of cell phones is price

Solution

elasticity of supply

=% change in production/% change in price

=(2800/1200-1)/(20/18-1)

=12

as elasticity of supply is higher than 1, that means the supply is elastic.

so you can conclude that the supply of cell phone is price elastic.

The above should be the answer..