Consider two markets: the market for cat food and the market for snake oil. The initial equilibrium for both markets is the same, P = $1.50, and Q = 35 units. When the price is $12.75, the quantity supplied of cat food is 73 units and the quantity supplied of snake oil is 109 units. For simplicity of analysis, the demand for both goods is the same. What is the elasticity of supply for snake oil? Please round to two decimal places. elasticity of supply for snake oil:
Consider two markets: the market for cat food and the market for snake oil. The initial equilibrium for both markets is the same, P = $1.50, and Q = 35 units. When the price is $12.75, the quantity supplied of cat food is 73 units and the quantity supplied of snake oil is 109 units. For simplicity of analysis, the demand for both goods is the same. What is the elasticity of supply for snake oil? Please round to two decimal places. elasticity of supply for snake oil:
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 1WNG
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Transcribed Image Text:Consider two markets: the market for cat food and the market for snake oil. The initial equilibrium for both markets is the same,
P = $1.50, and Q = 35 units. When the price is $12.75, the quantity supplied of cat food is 73 units and the quantity supplied
of snake oil is 109 units. For simplicity of analysis, the demand for both goods is the same.
What is the elasticity of supply for snake oil? Please round to two decimal places.
elasticity of supply for snake oil:
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