Compute and interpret the point elasticity of market supply of palay as priceincreases from PhP 20 to PhP 25.Compute and interpret the arc elasticity of market supply of palay.Among the producer groups in the Philippines, which group has the most elastic supply? Support your answer. Individual and Market Supply CurveQuantityPrice Supplied (gs) ofPalay in Luzon(PhP/kg)(in billion kg)11122025QuantitySupplied (qs) ofPalay in Visayas(in billion kg)3.03.5Quantity Supplied(qs) of Palay inMindanao (inbillion kg)4.04.5Quantity Supplied(Qs) of Palay in thePhilippines (inbillion kg)

Given Price QS in Luzon Qs in Visayas Qs in Mindanao 20 11 3 4 25 12 3.5 4.5

Answered: Quantity Price Supplied (qs) of Palay…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Compute and interpret the point elasticity of market supply of palay as price
increases from PhP 20 to PhP 25.
Compute and interpret the arc elasticity of market supply of palay.
Among the producer groups in the Philippines, which group has the most elastic supply? Support your answer.

Individual and Market Supply Curve
Quantity
Price Supplied (gs) of
Palay in Luzon
(PhP/kg)
(in billion kg)
11
12
20
25
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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