The price elasticity of supply with mid-point method when price rises from $900 to $1100 and ascertain its nature. If for technological advancement the firms produce 1000 more computers at any given price, what will happen to the elasticity compared to part (a)? If in the long-run supply rises by 20% at any given price, what will be the impact of price rise on the elasticity of supply compared to part (a)? Concept Introduction: Price Elasticity of Supply: The price elasticity of supply refers to the percentage change in the quantity supplied in response to the percentage change in price. Elastic Supply: If the elasticity of supply is greater than 1 then the supply is elastic. Inelastic Supply: If the elasticity of supply is less than 1 then the supply is inelastic. Unit-Elastic: If the elasticity of supply is equal to 1 then the supply is unit elastic.

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Chapter 6, Problem 3P

To determine

The price elasticity of supply with mid-point method when price rises from $900 to $1100 and ascertain its nature.

If for technological advancement the firms produce 1000 more computers at any given price, what will happen to the elasticity compared to part (a)?

If in the long-run supply rises by 20% at any given price, what will be the impact of price rise on the elasticity of supply compared to part (a)?

Concept Introduction:

Price Elasticity of Supply:

The price elasticity of supply refers to the percentage change in the quantity supplied in response to the percentage change in price.

Elastic Supply:

If the elasticity of supply is greater than 1 then the supply is elastic.

Inelastic Supply:

If the elasticity of supply is less than 1 then the supply is inelastic.

Unit-Elastic:

If the elasticity of supply is equal to 1 then the supply is unit elastic.

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