The market for tractors is supplied by two firms, X and Y, each initially having 50% of the market.
A 10 % increase in the price of tractors leads to an increase in output from firm X of 10 % and from firm Y of 20%.
What is the price elasticity of supply of tractors in this market?
1 )
1
1.5
3 )
2
4 )
3
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