Answer:
1.6
Explanation:
The formula and the computation of the price elasticity of supply is shown below:
Price elasticity of supply = (Percentage change in quantity supplied) ÷ (percentage change in price)
where,
Percentage change in quantity supplied = 16%
And, the percentage change in price = 10%
So, the price elasticity of supply is
= 16% ÷ 10%
= 1.6
