Answered: Refer to the figure above. If the…

Refer to the figure above. If the elasticity of supply is 0.5 when the quantity changes from 100 to 150, what is the price at the quantity 100?

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section5.2: The Elasticity Of Supply

Problem 2QQ: Define the price elasticity of supply. Explain why the price elasticity of supply might be...

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Question

The following figure depicts the supply curve of a certain firm.
Price
70
60
50
40
30
20
10
0
0
Refer to the figure above. If the elasticity of supply is 0.5 when the quantity changes from 100 to 150,
what is the price at the quantity 100?
$2,50
$4
$5
50 100 150 200 250 300 Quantity
$6

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