Suppose the price of apples goes up from $20 to $22 a box. in direct response, goldsboro farms supplies 1200 boxes of apples instead of 1000 boxes. compute the coefficient of price elasticity (midpoints approach) for goldsboro's supply.

Given:

The price of apples  from $20 goes  to $22 a box

In response, the supply of apples from 1200 boxes down to  1000 boxes.

To compute for the coefficient of price elasticity (midpoints approach):

Let X the elasticity of supply = percentage change in quantity supplied / percentage change in price.

Using the midpoint formula,

 ((1200-1000)/(1000+1200)/2))/((24-22)/(20+22)/2))

200/(2200)/2/2/(42)/2

(200/1100)/(2/21)

.1818/ 0.0952

1.91

answerreactive approach;