Economic QuestionS?
CAn someone please help me how to find the price elasticity of supply between:
1. P=$10 and P=$8
2.P=$8 and P=$6
This is the only information i got:
Price Quantity Supplied
10 50
8 40
6 30
4 20
2 10
0 0
Thanks for everyone who helped!
Answer:
Price elasticity of supply is calculated % change in quantity/ % change in price. So, for the first one it is:
((10-8)/10)/((50-40)/50)=20%/2...
For the second, it is:
((8-6)/8)/((40-30)/30)=25%/25%...
In both instances, the price elasticity of supply is 1.
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1. P=$10 and P=$8
2.P=$8 and P=$6
This is the only information i got:
Price Quantity Supplied
10 50
8 40
6 30
4 20
2 10
0 0
Thanks for everyone who helped!
Answer:
Price elasticity of supply is calculated % change in quantity/ % change in price. So, for the first one it is:
((10-8)/10)/((50-40)/50)=20%/2...
For the second, it is:
((8-6)/8)/((40-30)/30)=25%/25%...
In both instances, the price elasticity of supply is 1.
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