Price Elasticity of Supply. The price elasticity of supply is calculated as the percentage change in quantity divided by the percentage change in price.
Using the Midpoint Method
PES = ((Q2-Q1) / ((Q2 + Q1) / 2)) / ((P2-P1) / ((P2 + P1) / 2))
PES = (((10) - (7)) / (((10) + (7)) / 2)) / (((50) - (40)) / (((50) + (40)) / 2))
PES = 1.59
the elasticity of beth's labor supply between the wages of $ 40 and $ 50 per hour is approximately 1.59
In this case, to 1% rise in price causes an increase in quantity supplied of 1.59%
answer:
the elasticity of beth's labor supply between the wages of $ 40 and $ 50 per hour is approximately 1.59
In this case, to 1% rise in price causes an increase in quantity supplied of 1.59%
There are four types of businesses organisation. Sole trader is owned by one person and he makes all the decisions, and earns profit and bears the loss himself. A partnership is owned by 2 or more people and they help each other. The profit and loss is divided between them.
It excludes money paid as salaries or wages to employees.
Choice of a marriage partner does not form part of personal finance. Ideally, personal finance talks about retirement planning, investments, budgeting, cash flow or any other things that may affect financial stability.
Answer:
- Paul Donut Franchisee : Perfectly Elastic Supply
- P & G Facial Tissues : Elastic Supply
- Papermate Pens : Inelastic Supply
- Bright Ideas Lightbulbs : Perfectly Inelastic Supply
Explanation:
Price Elasticity of Supply is sellers' quantity supplied response to price change. P(Es) = % change in supply / % change in price.
Supply can be classified by Price Elasticity of Supply, as undermentioned :
- Elastic Supply : P(Es) > 1 ; % change in supply > % change in price
- Inelastic Supply : P(Es) < 1 ; % change in supply < % change in price
- Unitary Elastic : P (Es) = 1 ; % change in supply = % change in price
- Perfectly Elastic Supply : P(Es) = ∞ ; Supply responds infinitely to any slight price change & so prices are constant.
- Perfectly Elastic Supply : P (Es) = 0 ; Supply responds negligibly to massive price change & so quantity supplied is constant
- Paul Donut Franchise : Unlimited Supply at constant price, so supply perfectly elastic
- P & G facial tissues : % change in supply i.e 66% > % change in price i.e 10% , so supply is elastic
- Papermate pens : % change in supply i.e 10 % < % change in price i.e 15% , so supply is inelastic
- Bright Ideas Lightbulbs : % change in supply 15% negligible in relation to 400% price change , so supply is perfectly inelastic
