(Answered) Describe at least one factor that determines elasticity

Economics

Problem 1: Assume that the price of washing machines increased from $840 to $800 per unit. The manufacturer decides to supply 150,000 units instead of 120,000. Calculate the price elasticity of supply. Is supply elastic or inelastic? Why? Describe at least one factor that determines elasticity.

Hint: To answer this question we need to use the midpoint formula. Assume we have the two ordered pairs (Q₁,P₁) and (Q₂,P₂).

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