Question
The supply function of a certain commodity is Q = a + b P2 + W1/2, where P is price and W is weather-related conditions
The supply function of a certain commodity is Q = a + b P2 + W1/2, where P is price and W is weather-related conditions affecting the supply. Assume that a<0 and b>0. Find the price elasticity of supply (QP) and the weather elasticity of supply (QW). Explain intuitively what those elasticities mean.
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The Industries Of The Future
Authors: Alec Ross
1st Edition
1476753660, 9781476753669
