Question

Obtain the producers surplus, given the supply function q=√4p-4 ,when market price is 10​

Answer 1

Answer:

heya!!

Explanation:

b) Calculate the price elasticity of demand and supply at the equilibrium price in July. Use the point elasticity formula to compute these two values of these elasticities.  

Answer:

The point elasticity of demand formula is  

Elasticity of Demand = (-1/slope)(P/Qd)

and the point elasticity of supply formula is  

Elasticity of Supply = (1/slope)(P/Qs)

At the equilibrium quantity and price we know (Q, P) = (10000, 400). We also have the demand and supply equations, but they are not in slope-intercept form. So, rewriting the two equations in slope-intercept form we have:

Demand Equation: P = 1400 – (1/10)Qd

Supply Equation: P = (1/20)Qd – 100

Now, we are ready to use the point elasticity formulas:

Point Elasticity of Demand = [-1/(-1/10)][400/10000] = .4 (hence, demand is inelastic at the point of equilibrium in this market)

Point Elasticity of Supply = [1/(1/20)][400/10000] = .8

hope it helps!!

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Answer 2

The point elasticity of demand formula is  

Elasticity of Demand = (-1/slope)(P/Qd)

and the point elasticity of supply formula is  

Elasticity of Supply = (1/slope)(P/Qs)

At the equilibrium quantity and price we know (Q, P) = (10000, 400). We also have the demand and supply equations, but they are not in slope-intercept form. So, rewriting the two equations in slope-intercept form we have:

Demand Equation: P = 1400 – (1/10)Qd

Supply Equation: P = (1/20)Qd – 100

Now, we are ready to use the point elasticity formulas:

Point Elasticity of Demand = [-1/(-1/10)][400/10000] = .4 (hence, demand is inelastic at the point of equilibrium in this market)

Point Elasticity of Supply = [1/(1/20)][400/10000] = .8