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The the supply function is given as Q is equal to minus 100 plus 10p find the the elasticity e using point method when prices is is rupees 15?
Most Upvoted Answer
The the supply function is given as Q is equal to minus 100 plus 10p f...
Q1-q/p1-p
q=-100+10p
0+10
q1-q/p1-p=10
10×15/50=150/50=3
q=-100+10p
0+10
q1-q/p1-p=10
10×15/50=150/50=3
Community Answer
The the supply function is given as Q is equal to minus 100 plus 10p f...
Understanding the Supply Function
The supply function is given by:
Q = -100 + 10p
Where:
- Q = Quantity supplied
- p = Price
To find the elasticity of supply (E) at a price of 15, we can use the point method.
Step 1: Calculate Quantity Supplied (Q)
- Substitute p = 15 into the supply function:
Q = -100 + 10(15)
Q = -100 + 150
Q = 50
Step 2: Determine the Derivative of the Supply Function
- The derivative of the supply function with respect to price (p) is:
dQ/dp = 10
Step 3: Use the Elasticity Formula
- The elasticity of supply (E) can be calculated using the formula:
E = (dQ/dp) * (p/Q)
Substituting the values:
E = (10) * (15/50)
Step 4: Calculate Elasticity
- E = 10 * 0.3
- E = 3
Conclusion
- The elasticity of supply at a price of 15 is 3, indicating that supply is elastic.
- This means that a 1% increase in price will lead to a 3% increase in quantity supplied, demonstrating a responsive supply to price changes.
The supply function is given by:
Q = -100 + 10p
Where:
- Q = Quantity supplied
- p = Price
To find the elasticity of supply (E) at a price of 15, we can use the point method.
Step 1: Calculate Quantity Supplied (Q)
- Substitute p = 15 into the supply function:
Q = -100 + 10(15)
Q = -100 + 150
Q = 50
Step 2: Determine the Derivative of the Supply Function
- The derivative of the supply function with respect to price (p) is:
dQ/dp = 10
Step 3: Use the Elasticity Formula
- The elasticity of supply (E) can be calculated using the formula:
E = (dQ/dp) * (p/Q)
Substituting the values:
E = (10) * (15/50)
Step 4: Calculate Elasticity
- E = 10 * 0.3
- E = 3
Conclusion
- The elasticity of supply at a price of 15 is 3, indicating that supply is elastic.
- This means that a 1% increase in price will lead to a 3% increase in quantity supplied, demonstrating a responsive supply to price changes.
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The the supply function is given as Q is equal to minus 100 plus 10p find the the elasticity e using point method when prices is is rupees 15?
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The the supply function is given as Q is equal to minus 100 plus 10p find the the elasticity e using point method when prices is is rupees 15? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The the supply function is given as Q is equal to minus 100 plus 10p find the the elasticity e using point method when prices is is rupees 15? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The the supply function is given as Q is equal to minus 100 plus 10p find the the elasticity e using point method when prices is is rupees 15?.
The the supply function is given as Q is equal to minus 100 plus 10p find the the elasticity e using point method when prices is is rupees 15? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The the supply function is given as Q is equal to minus 100 plus 10p find the the elasticity e using point method when prices is is rupees 15? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The the supply function is given as Q is equal to minus 100 plus 10p find the the elasticity e using point method when prices is is rupees 15?.
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