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Question 1

Suppose that when the price of laundry detergent increases from $3.8 to $4 quantity supplied increases from 200 to 230.

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

 

Hint




Question 2

Suppose that when the price of laundry detergent decreases from $4.3 to $3.5, quantity supplied decreases from 260 to 220.

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

 

Hint




Question 3

Suppose that the price of cereal decreases from $4 to $3.6. As a result, quantity supplied decreases from 250 to 190.

Based on this information classify the supply curve.

 

Hint




Question 4

Consider the following supply schedule for shoes.

PriceQuantity Supplied
$8431
$16455
$24479
$32503
$40527
$48551
$56575
$64599

Suppose that the price of shoes increases from $16 to $24.

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

 

Hint




Question 5

Consider the following supply schedule for jeans.

PriceQuantity Supplied
$10425
$20445
$30465
$40485
$50505
$60525
$70545
$80565

Suppose that the price of jeans increases from $70 to $80.

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

 

Hint