Economics For Today
Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Chapter 5, Problem 14SQP

(a)

To determine

Price elasticity of supply.

(a)

Expert Solution
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Explanation of Solution

The general formula for calculating price elasticity of supply is given below:

Price elasticity of supply=Quantity suppliedNewQuantity suppliedOld(Quantity suppliedNew+QuantitysuppliedOld2)PriceNewPriceOld(PriceNew+PriceOld2) (1)

Substitute the respective values in Equation (1) to calculate the price elasticity of supply in first case.

Price elasticity of supply=(4050(40+502))(810(8+102))=(1045)(29)=0.2222220.222222=1

Price elasticity of supply is 1.

Economics Concept Introduction

Price elasticity of supply: Price elasticity of demand is the responsiveness of the quantity supplied to the change in price, which is measured by dividing the percentage change in the quantity supplied of a product by the percentage change in the price of a product.

(b)

To determine

Price elasticity of supply.

(b)

Expert Solution
Check Mark

Explanation of Solution

By using Equation (1), the calculation of price elasticity of supply in second case is shows below:

Price elasticity of supply=(3040(30+402))(68(6+82))=(1035)(27)=0.2857140.285714=1

Price elasticity of supply is 1.

Economics Concept Introduction

Price elasticity of supply: Price elasticity of demand is the responsiveness of the quantity supplied to the change in price, which is measured by dividing the percentage change in the quantity supplied of a product by the percentage change in the price of a product.

(c)

To determine

Price elasticity of supply.

(c)

Expert Solution
Check Mark

Explanation of Solution

By using Equation (1), the calculation of price elasticity of supply in third case is shown below:

Price elasticity of supply=(2030(20+302))(46(4+62))=(1025)(25)=0.040.04=1

Price elasticity of supply is 1.

Economics Concept Introduction

Price elasticity of supply: Price elasticity of demand is the responsiveness of the quantity supplied to the change in price, which is measured by dividing the percentage change in the quantity supplied of a product by the percentage change in the price of a product.

(d)

To determine

Price elasticity of supply.

(d)

Expert Solution
Check Mark

Explanation of Solution

By using Equation (1), the calculation of price elasticity of supply in fourth case is shown below:

Price elasticity of supply=(1020(10+202))(24(2+42))=(1015)(23)=0.6666660.666666=1

Price elasticity of supply is 1.

Economics Concept Introduction

Price elasticity of supply: Price elasticity of demand is the responsiveness of the quantity supplied to the change in price, which is measured by dividing the percentage change in the quantity supplied of a product by the percentage change in the price of a product.

(e)

To determine

Price elasticity of supply.

(e)

Expert Solution
Check Mark

Explanation of Solution

By using Equation (1), the calculation of price elasticity of supply in fifth case is shown below:

Price elasticity of supply=(010(0+102))(02(0+22))=(105)(20)=22=1

Price elasticity of supply is 1.

Economics Concept Introduction

Price elasticity of supply: Price elasticity of demand is the responsiveness of the quantity supplied to the change in price, which is measured by dividing the percentage change in the quantity supplied of a product by the percentage change in the price of a product.

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Price Elasticity of Supply; Author: Economics Online;https://www.youtube.com/watch?v=4bDIm3j-7is;License: Standard youtube license