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The equation for a supply curve is P = 3Q – 8. What is the elasticity in moving from a price of 4 to a price of 7?

First and foremost, the elasticity of supply measures the change in quantity supplied in response to a change in price, bearing in mind that rational supplier would supply more at a higher price and lesser quantity at a lower price, in other words, the higher price, the lower the quantity supplied and vice versa.The elasticity of supply can be determined using the mid-point approach as well as the straight-forward approach.Both required that we determine the quantity initially supplied(old Q) and the quantity supplied when the price increases(new Q)P = 3Q – 8when P=4, 4=3Q-84+8=3Q3Q=12Q=12/3Q(old Q)=4

P = 3Q – 8when P=7, 7=3Q-87+8=3Q3Q=15Q=15/3Q(new Q)=5Mid-point elasticity of supply=(new Q-old Q)/(new Q+old Q)/2/(new P-old P)/(new P+old P)/2new Q=5old Q=4new P=7old P=4the elasticity of supply=(5-4)/(5+4)/2/(7-4)/(7+4)/2the elasticity of supply=(1/4.5)/(3/5.5)the elasticity of supply=0.41

The formula for the straight-forward elasticity formula is as shown below:the elasticity of supply=(new Q-old Q)/old Q/(new P-old P)/old Pthe elasticity of supply=(5-4)/4/(7-4)/4the elasticity of supply=(1/4)/(3/4)the elasticity of supply=0.33Again, it is noteworthy that the elasticity of supply for the two methods is less than 1, which means that the supply is inelastic, the increase in price is greater than the increase in quantity supplied.For instance, an elasticity of 0.33 means that if the price increases by 1%, the quantity supplied would increase by 0.33%

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all right, this is question number 36 from Chapter five. It's asking. The equation for supply occur of his P equals three. Q minus eight. What is the Austin City and moving from a price affordable price of seven. So I've gone ahead and drawn out of the equation. P equals three Q minus eight, and I've drawn up this little table so we can calculate the cues for a corresponding piece. Let's start. Four equals three. Q minus 8 12 equals three. Q. So accused for now, for seven. Uh, no. I'm gonna have to dry it out. Um, actually, don't be like this. Um, cool. So, for a price of seven equals three Q finest 8 15 equals three. Q. Look at that. Cues. Five. Okay, cool. So it's asking us about the elasticity, Um, and so L A s s t is gonna be percent percent change quantity over percent change price. So what's a percent change quantity that's gonna be moving from 4 to 5. That's gonna be won over the average. So 4.5 times 100 to get a percent. Um, and that is gonna be one. But by four point by 22.2% now for price removing from 40 sevens. That's a change of three over 5.5 because the average of four and seven so three divided by 5.5 is 54.5%. And so the problem is just asking us for the elasticity. So all we have to do is solve 22 point 2% over 54.5% and that's gonna be 0.4 07

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