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definition: A change in price leads to the same percentage change in the quantity supplied
- equal to 1 unitary connected key terms: calculating elasticity | elasticity of supply | elastic | inelastic
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The price of PS3 has decreased from $300 dollars when it first came out to currently being $150. Likewise, Sony has decreased its quantity supplied from 4 million units to 2 million units. What is the elasticity of supply, and determine whether the product is elastic, inelastic or unitary? |