Advertisements
Advertisements
Question
Find the elasticity of supply for the supply function x = 2p2 + 5 when p = 3.
Advertisements
Solution
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`
APPEARS IN
RELATED QUESTIONS
Revenue function ‘R’ and cost function ‘C’ are R = 14x – x2 and C = x(x2 – 2). Find the
- average cost
- marginal cost
- average revenue and
- marginal revenue.
Find the values of x, when the marginal function of y = x3 + 10x2 – 48x + 8 is twice the x.
The total cost function for the production of x units of an item is given by C = 10 - 4x3 + 3x4 find the
- average cost function
- marginal cost function
- marginal average cost function.
Find the elasticity of supply when the supply function is given by x = 2p2 + 5 at p = 1.
Average fixed cost of the cost function C(x) = 2x3 + 5x2 – 14x + 21 is:
If the demand function is said to be inelastic, then:
Relationship among MR, AR and ηd is:
Instantaneous rate of change of y = 2x2 + 5x with respect to x at x = 2 is:
If the average revenue of a certain firm is ₹ 50 and its elasticity of demand is 2, then their marginal revenue is:
The demand function is always
