00:01
So i think maybe some of the answer options got cut off here, but i'll try to do my best to give you everything i can.
00:07
So remember that the elasticity of supply has a formula.
00:13
And that formula would be the change in the quantity over the change in the price.
00:18
And since we're talking about the supply curve, we'll say the quantity supplied.
00:22
So there's a whole bunch of ways to do this, right? because in general, elasticity is going to be different at every single.
00:30
Point, right? so the first way to do this would be the arc elasticity, right, over a range.
00:37
So for example, i can see if we use the entire supply curve, we're going to have maybe the best definition in some sense.
00:46
So imagine we look at the point in the bottom left and the top right.
00:51
We see that quantity is going from, say, zero to 200, and price is going from zero to 200.
00:57
And price is going from 0 to 10.
01:01
And these things have midpoints, right? when we're doing an arc elasticity calculation, you want to use the midpoint percentage change to make it symmetric...