Answer to Question #106817 in Microeconomics for Steve

Question #106817
Monthly supply of soccer tickets is given by the equation: Qs = 15,000 + 43.75P. At a price of R800, what is the price elasticity of supply?
1
Expert's answer
2020-04-06T09:47:13-0400

Formula for point elasticity:

E = "(P\/Q)*(\\Delta Q\/\\Delta P)" .

"\\Delta Q\/\\Delta P" can be found in supply formula ant it is 43.75.

With a given price of R800 we can calculate the quantity - 50,000.

E = (800/50,000)*43.75 = 0.7.

So supply is inelastic.


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