Question

Find the elasticity of supply for the supply function x = 2p² + 5 when p = 3.

Answer 1

x = 2p² + 5

`"dx"/"dp" = 2 xx 2p + 0 = 4p`

Elasticity of supply: ηs = `"p"/x * "dx"/"dp"`

`= "p"/(2"p"^2 + 5) xx 4"p"`

`= "4p"^2/(2"p"^2 + 5)`

When p = 3, elasticity of supply, ηs = `(4 xx 3^2)/(2(3)^2 + 5)`

`= (4 xx 9)/(18 + 5)`

`= 36/23`