Question

13. How much is the price elasticity of supply if the supply curve is vertical?

14. Consider the demand for good E. If the number of substitutes for good E decreases, will the demand become more elastic?

 

15. Refer to the accompanying table, calculate the price elasticity of demand for erasers if the price of erasers decreases from $2.5 to $1 using the midpoint method.

Price of Erasers Quantity Demanded Quantity Demanded

of Erasers of Pencils

$.50   10   12

$1.00 8   11

$1.50 7   10

$2.00 6 9

$2.50 5 8

16. Consider the following table. Suppose quantity supplied increases by 30 for every price level. Find the new equilibrium price.

Price Quantity    Quantity

Demanded Supplied

$10.00 10   100

$8.00 20    80

$6.00 30    60

$4.00 40    40

$2.00 50 20

$0.00 60 0

  

@ 94% Times New Rome 14 BIU A... 13. How much is the price elasticity of supply if the supply curve is vertical? 14. Consider the demand for good E. If the number of substitutes for pood E decreases, will the demand become more elastie? 15. Refer to the accompanying table, calculate the price elasticity of demand for crasers if the price of crasers decreases from $2.5 to Si using the midpoint method. Outlanded Quantity Demanded ofrer of Pencils $50 10 SI SO 7 10 s 16. Consider the following table. Suppose quantity supplied increases by 30 for every price level. Find the new equilibrium price Qay Quantity Price 510.00 100 50.00 0

Answer 1

As per HOMEWORKLIB RULES in case of multiple questions only the first question is to be answered

Kindly ask rest of the questions in a separate post

13.

Price elasticity of supply refers to the degree of responsiveness of change in quantity supplied of a good due to change in the price of a good.

A vertical supply curve represents a perfectly inelastic supply curve, which means any change in price will have 0 impact on the quantity supplied of the good.

This means price elasticity of supply would be 0