The problem asks for the price elasticity of supply using the midpoint formula. Let's break it down.

Price Elasticity of Supply Formula:

$E_s = \frac{\%\Delta Q_s}{\%\Delta P}$

Where:

• $\%\Delta Q_s$ is the percentage change in quantity supplied.
• $\%\Delta P$ is the percentage change in price.

Midpoint Formula:

$\%\Delta Q_s = \frac{Q_2 - Q_1}{\frac{Q_2 + Q_1}{2}}$ $\%\Delta P = \frac{P_2 - P_1}{\frac{P_2 + P_1}{2}}$

Given:

• Initial price, $P_1 = 26$
• New price, $P_2 = 30$
• Initial quantity supplied, $Q_1 = 250$
• New quantity supplied, $Q_2 = 450$

Step 1: Calculate the percentage change in quantity supplied:

$\%\Delta Q_s = \frac{450 - 250}{\frac{450 + 250}{2}} = \frac{200}{350} = 0.5714$

Step 2: Calculate the percentage change in price:

$\%\Delta P = \frac{30 - 26}{\frac{30 + 26}{2}} = \frac{4}{28} = 0.1429$

Step 3: Calculate the price elasticity of supply:

$E_s = \frac{0.5714}{0.1429} = 4.000$

So, the price elasticity of supply is 4.000.

Would you like more details or have any questions?

Related Questions:

1. How does price elasticity of supply differ from price elasticity of demand?
2. What factors affect the elasticity of supply?
3. How does elasticity of supply impact pricing decisions for firms?
4. Can elasticity of supply be negative? Why or why not?
5. How do different types of goods (luxury vs necessity) affect elasticity of supply?

Tip: Always double-check units and make sure you use the midpoint formula correctly for more accurate results in elasticity calculations!