Food stamps programs serve only to drive food prices higher, not increase the quantity of food available to the poor.â? What would the elasticity of supply have to be for this statement to be true? What would the elasticity of supply have to be for a food stamp program to increase the availability of food to the poor with no prices increase?

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Recall that price elasticity of supply is bounded by 0 and positive infinity, with 0 being perfectly inelastic and infinity being perfectly elastic. A perfectly inelastic supply curve is vertical and would satisfy the ...

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This solution clearly assesses price elasticity of supply.

Explain the following
Law of demand and law of supply
Factors affecting demand and supplyPriceelasticity of demand
Factors affecting priceelasticity of demand

Suppose the supply for good x is estimated by the following equation:
Q(x) supplied = 4 + 0.8P(x) - 0.2P(x)expcted - 0.4W
Where;
Q(x) supplied = quantity supplied of x
P(x) = current average good of x
P(x) expected = expected price of good x
W = average wage rate
Suppose;
P(x) = $5
P(x) expected = $6
W = $4.5

1. Determine the priceelasticity of demand at each quantity demanded using the formula: Percentage change in quantity demanded = (Q2-Q1)/Q1 divided by percentage change in price = (P2-P1)/P1
b. Redo exercise 1a using price changes of $10 rather than $5
c. Plot the price and quantity date given in the demand schedule. Indi

The demand for company X product is given by Q(x) = 12 - 3P(x)+ 4P (y)
Suppose good X sells for $3.00 per unit and good Y sells for $1.50 per unit.
a. Calculate the cross-priceelasticity of demand between goods X and Y at the given prices.
b. Are goods X and Y substitutes or complements?
c. What is the own price elastici

Consider a service that you buy frequently. (Can use pedicure 2 times per month at $50 for graph and calculation)
a. Suppose that the price was 5% lower and all other factors do not change. How much more would you buy each year?
b. Using this information, calculate the own-priceelasticity of your demand.

1. Suppose the market demand curve for a Product is given by Q = 250 - 5P and the market supply curve is given by Q = -50 + 25P.
1. What are the equilibrium price and quantity in this market?
2. At the market equilibrium, what is the priceelasticity of demand?
3. Suppose the price in this market is $8. What is the amou

Currently, at a price of $1 each, 100 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $1 to $2 is unit-elastic (Es=1.0). So how many popsicles will be sold each day in the short run if the price rises to $2 each? In the long run, if