6. The supply function of certain good is given by: P = - 0.02Q2 + 5Q - 5. a) Find the price elasticity of supply at a level of output Q=10. Discuss. b) Estimate the percentage change in supply due to a 5% inoro00 from urrent quen

6. The supply function of certain good is given by: P = - 0.02Q2 + 5Q - 5. a) Find the price elasticity of supply at a level of output Q=10. Discuss. b) Estimate the percentage change in supply due to a 5% inoro00 from urrent quen

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 9SQ

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Question

The supply function of certain good is given by: P =
- 0.02Q2 + 5Q – 5.
6.
a) Find the price elasticity of supply at a level of
output Q=10. Discuss.
b) Estimate the percentage change in supply due to a
5% increase in price from current quantity Q=10.
c)
For what value of Q is supply unit elastic?

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