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The accompanying table gives part of the supply schedule for personal computers in the Pakistan. Price of Computers Quantity of Computers RS 110000 12000 RS

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The accompanying table gives part of the supply schedule for personal computers in the Pakistan. Price of Computers Quantity of Computers RS 110000 12000 RS 90000 8000 Required Answers: a) Price elasticity of supply when the price increases from Rs 90000 to RS 110000 using the midpoint formula. b) Suppose rms produce 1,000 more computers at any given price due to improved technology. As price increases .from Rs 90000 to Rs 1,10000, is the price elasticity of supply now greater than, less than, or the same as it was in part a? c) Suppose a longer time period under consideration means that the quantity supplied at any given price is 20% higher than the gures given in the table. As price increases from Rs 90000 to Rs 1,10000, is the price elasticity of supply now greater than, less than, or the same as it was in part a

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