Respuesta :
When the cost of ice cream increases by 10%, a marketing student notices that suppliers are willing to sell 5% more ice cream. The student is correct in estimating that ice cream's supply elasticity is 0.5.
What exactly does supply elasticity entail?
Price elasticity of supply is the percentage change in quantity supplied as a result of a specific percentage change in the commodity's own price. The ratio between the percentage change in the quantity delivered and the percentage change in the commodity's price is used to calculate it.
The quantity supply price elasticity is calculated as % change in quantity supplied /% change in price. Economists determine the elastic or inelastic nature of the quantity supplied of an item by calculating the price elasticity of supply.
the supply's price elasticity = % Variation in the supply's volume / % price variation
The price elasticity of supply = 5/10
The price elasticity of supply = 0.5
Learn more about Price elasticity of supply: https://brainly.com/question/13055832
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