If the supply equation is Q = 7 + 0.1P + 0.004P 2 find the price elasticity
Question:
If the supply equation is
Q = 7 + 0.1P + 0.004P2
find the price elasticity of supply if the current price is 80.
(a) Is supply elastic, inelastic or unit elastic at this price?
(b) Estimate the percentage change in supply if the price rises by 5%.
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de e0 dP 010008P At P 80 ...View the full answer
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