4. Compute and interpret the point elasticity of market supply of palay as price increases from Php 20 to Php 25. 5. Compute and interpret the arc elasticity of market supply of palay. 6. Among the producer groups in the Philippines, which group has the most elastic supply? Support your answer.
4. Compute and interpret the point elasticity of market supply of palay as price increases from Php 20 to Php 25. 5. Compute and interpret the arc elasticity of market supply of palay. 6. Among the producer groups in the Philippines, which group has the most elastic supply? Support your answer.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
4. Compute and interpret the point elasticity of market supply of palay as price increases from Php 20 to Php 25.
5. Compute and interpret the arc elasticity of market supply of palay.
6. Among the producer groups in the Philippines, which group has the most elastic supply? Support your answer.
7. Assume that producers in Luzon can only produce 11 billion kg of palay at the time of harvest even if price reaches Php30 per kg, what will be the value of their own price elasticity of supply?
![Individual and Market Supply Curve
Price (Php/kg)
20
25
Quantity
Supplied (qs) of
Palay in Luzon
(in billion kg)
11
12
Quantity
Supplied (qs) of
Palay in Visayas
(in billion kg)
3.0
3.5
Quantity
Supplied (qs) of
Palay in
Mindanao (in
billion kg)
4.0
4.5
Quantity
Supplied (qs) of
Palay in the
Philippines (in
billion kg)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F454f322f-83c6-474d-a43d-283ff106e816%2Ff945066e-c051-48fc-98f7-0d7c25e08e99%2F0mp40dl_processed.png&w=3840&q=75)
Transcribed Image Text:Individual and Market Supply Curve
Price (Php/kg)
20
25
Quantity
Supplied (qs) of
Palay in Luzon
(in billion kg)
11
12
Quantity
Supplied (qs) of
Palay in Visayas
(in billion kg)
3.0
3.5
Quantity
Supplied (qs) of
Palay in
Mindanao (in
billion kg)
4.0
4.5
Quantity
Supplied (qs) of
Palay in the
Philippines (in
billion kg)
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