price elasticity of supply over the $5-$8 price range is? 15+ Price14+13-12+11+10-9+8+7-6+4+3.406080100120140160 Quantity20

Answered: 15+ Price 14+ 13- 12+ 11+ 10- 9+ 8+ 7-…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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price elasticity of supply over the $5-$8 price range is?

15+ Price
14+
13-
12+
11+
10-
9+
8+
7-
6+
4+
3.
40
60
80
100
120
140
160 Quantity
20

Expert Solution

Step 1

The percentage change in the quantity supplied in the economy is divided by the percentage change in the price. The economy was producing and supplying 50 units at a price of $5 per unit. The increase in the quantity from 5 to 8 makes the quantity supplied equal to 130. Thus, the elasticity of supply can be calculated as follows:

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