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
Find the elasticity of demand in terms of x for the following demand laws and also find the value of x where elasticity is equal to unity.
p = (a – bx)2
Show that MR = p`[1 - 1/eta_"d"]` for the demand function p = 400 – 2x – 3x2 where p is unit price and x is quantity demand.
The total cost function y for x units is given by y = 3x`((x+7)/(x+5)) + 5`. Show that the marginal cost decreases continuously as the output increases.
The cost function of a firm is C = x3 – 12x2 + 48x. Find the level of output (x > 0) at which average cost is minimum.
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 out the indicated elasticity for the following function:
p = `10 e^(- x/3)`, x > 0; ηs
Find the elasticity of supply when the supply function is given by x = 2p2 + 5 at p = 1.
If the demand function is said to be inelastic, then:
The elasticity of demand for the demand function x = `1/"p"` is:
The demand function is always
