Requirements for Price Elasticity of Supply Calculation

Steps:

• Recall the formula: Price elasticity of supply (PES) = (% change in quantity supplied) / (% change in price).
• Identify components: % change in quantity supplied requires original and new quantities supplied.
• Identify components: % change in price requires original and new prices.
• Confirm: These four values allow direct computation of PES.

Why C is correct:

• PES formula demands original/new prices and original/new quantities supplied to compute percentage changes, as in PES = [(Q_new - Q_original)/Q_original] / [(P_new - P_original)/P_original].

Why the others are wrong:

• A: Includes quantity demanded (irrelevant for supply elasticity) and omits original quantity supplied.
• B: Equilibrium quantities provide one point but lack price change and separate original/new supplied quantities.
• D: Focuses on new price/demanded/supplied but misses original price and original supplied quantity for changes.

Final answer: C