At a price of $50 for a CD player, firms are willing to produce and sell...

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At a price of $50 for a CD player, firms are willing to produce and sell...

At a price of $50 for a CD player, firms are willing to produce and sell 2200 CD players. At a price of $70 for a CD player, firms are willing to produce and sell 2600 CD players. What is the price elasticity of supply in this range? (Use arc elasticity.)

a. 2

b..5

c. .05 Incorrect. Please review Top Ten Concept # 5.

d. 20

e. none of the above

Question 9

In the figure above, the arc elasticity of the demand curve between points A and B is

a. 0.50

b. 0.86

c. 1.17

d. 2.00

e. 3.75

please help asap!

Thank you.

business economics

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Answer 1

Answer #1

Q1, P1 : 2200, 50

Q2, P2: 2600, 70

Elasticity = [(q2-q1) / ((q2+q1)/2)] / [(p2-p1) / ((p2+p1)/2)]

= [(2600-2200) / ((2600+2200)/2)] / [(70-50) / ((70+50)/2)]

= [400 / 2400] / [20 / 60]

= 0.16667 / 0.33333

= 0.5

option b is the correct answer

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Answer 2

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