An apartment rents for $650 per month with 10,000 units rented, and rises to $700 per month with 13,000 units supplied. Using the midpoint method, what is the price elasticity of supply?

1. Percentage change in quantity: (13,000 minus 10,000) divided by the average of 13,000 and 10,000, which is 11,500, times 100, is about 26.1 percent. 2. Percentage change in price: (700 minus 650) divided by the average of 700 and 650, which is 675, times 100, is about 7.4 percent. 3. Price elasticity of supply equals 26.1 divided by 7.4, which is about 3.53. 4. A 1 percent rise in price causes about a 3.5 percent rise in quantity supplied, so supply is highly elastic here. 5. None of the other options reflect this ratio of a much larger quantity response than price change. _Source: OpenStax Principles of Microeconomics for AP Courses (CC BY 4.0), Ch 5 "Elasticity", section 5.1 | Price Elasticity of Demand and Price Elasticity of Supply_