What is the price elasticity of supply associated with a straight line supply curve passing through the origin?

D(p) = 10 – 3p b = ΔQ/ΔP = 3 p = 5/3 or D (5/3)= 10 - 3x5/3 Q = 10-5 =5 ed = ΔQ/ΔP x P/Q = -3 x (5/3)/5 ed= -1 i.e., the elasticity of demand...

ed = -0.2 [Note that ed = -2. Hence we need not prefix ed to (-2)]  Percentage change in price = 5% ed = (percentage change in demand)/(percentage change in price) 0.2 =  (percentage...

Quantity MR    TR AR     Ed = ΔQ/ΔP x P/Q    1 10 10 10/1 = 10 - 2 6 10 + 6 = 16 16/2 = 8 1/2 x 10/1 = 5 3 2 16 + 2 = 18 18/3 = 6 1/2 x 8/2 = 2 4 2 18 +...

It is true that measure of price elasticity of demand for a normal good carrier minus sign because there is an inverse relationship between P and Q. Whereas there is...

exD = -(2); ed = -(3) The coefficient of price elasticity of demand is always negative due to the law of demand which states that there is an inverse relation...

Good B has higher elasticity as compared to A. It is because with change in price by one per cent, percentage change in demand for B is 4% while in...

is the demand curve likely to be a rectangular hyperbola? Give Reason.

Yes, we do agree with the given statement that the supply curve is the rising portion of marginal cost curve over and above the minimum of Average Variable Cost curve,...

Supply is elastic because supply of a good is more than one.

The correct answer is 4 : 5