00:04
Here guys, let's do problem 4.
00:07
This problem we need to calculate the price elasticity of supply.
00:12
Given q is equal to 150 plus 5b plus 0 .1 p square and p equal to 9 and p equal to 11.
00:22
Substitute p is equal to 9 in this equation and we need to calculate q.
00:26
When we substituted p equal to 9 and solve this equation for q, we get 203 .1.
00:34
To 11 we get q is equal to 217 .1 therefore delta p is 11 minus 9 which is 2 and delta q is 217 minus 0 .1 minus 203 .1 so it is 14 also we know that q is going to be the average of these two quantities when we take the average of this quantities we get q as 210 .1 and for p when we take the average of these two content is 9 and 11, we get p is equal to 10.
01:10
Therefore, the price elasticity of supply average along the arc between p equal to 9 and 11 is e is equal to p divided by q, multiply delta q divided by delta p.
01:22
And when we insert all these values, we get 140 divided by 420 .2 or price elasticity is 0 .332...