3. 3. Price Elasticity at a Point.Suppose that the equation of a supply function is as follows: Q=25P1. Sketch this supply function on a diagram below.7L₁3. Use red ink to ketch a supply curve passing through the point (P=5, Q=125) thatis inelastic at every point on the curve.5L2. If P = 5, what is the price elasticity of supply at that point? Can you prove thatsupply is unitary elastic at every single point on this supply curve? Show all yourwork.4. Use blue ink to sketch a supply curve passing through the point (P=5, Q=125) thatis elastic at every point on the curve.

We are given the supply function as: Q = 25P

Answered: Suppose that the equation of a supply…

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Suppose that the equation of a supply function is as follows: Q=25P 1. Sketch this supply function on a diagram below.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 3.6P: (Price Elasticity of Supply) Calculate the price elasticity of supply for each of the following...

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Question

3. Price Elasticity at a Point.
Suppose that the equation of a supply function is as follows: Q=25P
1. Sketch this supply function on a diagram below.
7
L₁
3. Use red ink to ketch a supply curve passing through the point (P=5, Q=125) that
is inelastic at every point on the curve.
5
L
2. If P = 5, what is the price elasticity of supply at that point? Can you prove that
supply is unitary elastic at every single point on this supply curve? Show all your
work.
4. Use blue ink to sketch a supply curve passing through the point (P=5, Q=125) that
is elastic at every point on the curve.

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