Suppose the accompanying table contains data on how many Veggie Delite sandwiches Subway is willing to sell each day at two different prices. Calculate the daily price elasticity of supply when the price increases from $5.00 to $7.50. Please round to the nearest hundredth. Price (per sandwich) Quantity supplied (sandwiches per day) $5.00 200,000 $7.50 210,000 a. Daily price elasticity of supply for Veggie Delite sandwiches = b. The daily price elasticity of supply for Veggie Delite sandwiches is relatively Elastic or Inelastic Now consider how responsive Subway’s supply of Veggie Delite sandwiches is to changes in price on an annual basis instead of a daily basis. c. Compared to the daily value, the annual price elasticity of supply for Veggie Delite sandwiches is likely to be more Inelastic or Elastic and the annual supply curve is likely Flatter or Steeper to be than the daily supply curve.
Suppose the accompanying table contains data on how many Veggie Delite sandwiches Subway is willing to sell each day at two different prices. Calculate the daily price elasticity of supply when the price increases from $5.00 to $7.50. Please round to the nearest hundredth. Price (per sandwich) Quantity supplied (sandwiches per day) $5.00 200,000 $7.50 210,000 a. Daily price elasticity of supply for Veggie Delite sandwiches = b. The daily price elasticity of supply for Veggie Delite sandwiches is relatively Elastic or Inelastic Now consider how responsive Subway’s supply of Veggie Delite sandwiches is to changes in price on an annual basis instead of a daily basis. c. Compared to the daily value, the annual price elasticity of supply for Veggie Delite sandwiches is likely to be more Inelastic or Elastic and the annual supply curve is likely Flatter or Steeper to be than the daily supply curve.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose the accompanying table contains data on how many Veggie Delite sandwiches Subway is willing to sell each day at two different prices. Calculate the daily
| Price (per sandwich) |
Quantity supplied (sandwiches per day) |
|---|---|
| $5.00 | 200,000 |
| $7.50 | 210,000 |
a. Daily price elasticity of supply for Veggie Delite sandwiches =
b. The daily price elasticity of supply for Veggie Delite sandwiches is relatively Elastic or Inelastic
Now consider how responsive Subway’s supply of Veggie Delite sandwiches is to changes in price on an annual basis instead of a daily basis.
c. Compared to the daily value, the annual price elasticity of supply for Veggie Delite sandwiches is likely to be more Inelastic or Elastic and the annual supply curve is likely Flatter or Steeper to be than the daily supply curve.
Transcribed Image Text:Suppose the accompanying table contains data on how many Veggie Delite sandwiches Subway is willing to sell each day
at two different prices. Calculate the daily price elasticity of supply when the price increases from $5.00 to $7.50. Please
round to the nearest hundredth.
Quantity supplied
(sandwiches per day)
Price
(per sandwich)
$5.00
200,000
$7.50
210,000
a. Daily price elasticity of supply for Veggie Delite sandwiches =
b. The daily price elasticity of supply for Veggie Delite sandwiches is relatively
Now consider how responsive Subway's supply of Veggie Delite sandwiches is to changes in price on an annual basis
instead of a daily basis.
c. Compared to the daily value, the annual price elasticity of supply for Veggie Delite sandwiches is likely to be more
and the annual supply curve is likely to be
than the daily supply curve.
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