A rise in the price of coffee milkshakes from R6 to R10 results in an increase in quantity supplied from 6 000 to 12 000 units. What is the arc price elasticity of supply for coffee milkshakes?

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Change in price=6000/6000=100%, change in quantity is 4/6=66⅔%.

APE=100/66⅔=3/2=1.5.

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