# com/courses/26116/discussion_topics/176523?module_item_id%3D1255293LTaJtiCTty arnaTopicAccording to the law of supply, if buyers are willing to pay more, sellers are willing to supply more. The price elasticityof supply is a measure of how much sellers are able to adjust the quantity supplied in response to changes in price.Read the following scenario and answer the corresponding questions.World renowned fashion designer Alvin Stein died recently. His company, Alvin Stein Designs has released the last100 pair of his signature ASD Original jeans. The pattern and design sketches for the ASD Originals were buried withAlvin, per his last wishes. The current price of a pair of ASD Originals is \$10,000.• What is the current price elasticity of supply for a pair of ASD Originals? Explain your answer.• Five years after his death, Alvin's sister, Jan released an exact replica of the signature jeans, called ASD Original2.0, priced at \$5000. How might this affect the demand for the remaining 50 pairs of ASD Originals, still retailingfor \$10,000?• Ten years after Alvin's death, a vault is discovered containing 1000 pairs of ASD Originals. How might thisdiscovery affect the demand for the remaining 30 pairs of ASD Originals? How might this affect the priceelasticity of supply for the ASD Original 2.0 jeans?Post your response to the discussion board.A Quality ResponseYour responses should be a minimum of three posts and it should address all criteria in the rubric below:in

Question
Asked Feb 12, 2020
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Step 1

Given Information-

The last 100 pairs of the original good are supplied at the current price equal to \$10,000/pair.

Step 2

Price elasticity of supply can be calculated using the following formula-

Step 3
• The current price elasticity of the supply for a pair of the original is equal to zero. This is because the supply of the original good cannot be increased beyond the last 100 pairs.

S...

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