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4. The following supply function was estimated for milk: Qs 120P-44F-80W+ 132T, where: Qs is the quantity supplied (4,400 ewt. Average) P is the milk price ($11.00/cwt. F is feed cost (S60/ton average) W is average hourly wage paid for labor ($8.25/hour average T is an index of technology (average is 6). SHOW YOUR WORK. (a) Compute the own price elasticity of supply. (b) Compute the elasticity of supply with respect to feed cost. (c) Compute the elasticity of supply with respect to technology. (d) Compute the elasticity of supply with respect to wage rate. (e) Based on the above calculated elasticity of supply with respect to wage (in Question (d), what would happen to the quantity of supply if the average wage increased from $8.25 to $8.30 per hour (GLe, the quantity increase or decrease by how many units)?
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