Suppose the supply equation is: Q = 12 + 0.70p. What is the price elasticity of supply if the market price is $5?(round your answer to three decimal places). This means that if the price increases by 8%, the quantity supplied will by % (round your answer to two decimal places).

Suppose the supply equation is: Q = 12 + 0.70p. What is the price elasticity of supply if the market price is $5?(round your answer to three decimal places). This means that if the price increases by 8%, the quantity supplied will by % (round your answer to two decimal places).

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 13PAE

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Question

Suppose the supply equation is:
Q= 12 + 0.70p.
What is the price elasticity of supply if the market price is $5? (round your answer to three decimal places).
This means that if the price increases by 8%, the quantity supplied will
by % (round your answer to two decimal places).

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