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Suppose that when the price of laundry detergent increases from $3.6 to $4.4 quantity supplied increases from 220 to 250.

Using the mid-point elasticity approach, calculate price elasticity of supply.

 

Hint




Suppose that when the price of laundry detergent decreases from $4 to $3.7, quantity supplied decreases from 250 to 190.

Using the mid-point elasticity approach, calculate price elasticity of supply.

 

Hint




Suppose that the price of cereal decreases from $4.4 to $3.4. As a result, quantity supplied decreases from 270 to 190.

Based on this information classify the supply curve.

 

Hint




Consider the following supply schedule for books.

PriceQuantity Supplied
$4423
$8443
$12463
$16483
$20503
$24523
$28543
$32563

Suppose that the price of books increases from $28 to $32.

Using the mid-point approach, calculate price elasticity of supply.

 

Hint




Consider the following supply schedule for bags.

PriceQuantity Supplied
$5414
$10419
$15424
$20429
$25434
$30439
$35444
$40449

Suppose that the price of bags increases from $5 to $10.

Using the mid-point approach, calculate price elasticity of supply.

 

Hint