Jason produces bananas and sells them to the consumer at $2.00 per pound. Customers say they are priced too high. Jason decides to reduce his price and sell the bananas at $1.50 a pound.

Let's assume Jason sells 1,000 pounds of bananas daily. At the previous price of $2.00 a pound, the daily sales would be $2,000.

At the new price of $1.50 (a 33.33% decrease in price), Jason uses unit elastic demand principles and expects the quantity he supplies to increase by the same 33.33%. This means he would now expect to sell 1,333.3 bananas at $1.50.

A.What is the supply curve function that is unit elastic for all positive quantities?

B.What is the supply curve function for all positive quantities?

C.What is the demand curve function given the income elasticity of an inferior good?