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 ...

Solution Summary

This solution clearly assesses price elasticity of supply.

Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops from 30 pounds of apples a month to 20 pounds of apples. Calculate your priceelasticity of demand of apples. What can you say about your priceelasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic? Be sure t

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

Given the same priceelasticity of supply, sellers would be able to pass along the smalles portion of a 10%tax on which item?
Beef with a priceelasticity of demand of .62
Pork with a priceelasticity of demand of .73
Chicken with a priceelasticity of demand of .32
Fish with a priceelasticity of demand of .12

Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops from 30 pounds of apples a month to 20 pounds of apples. Calculate your priceelasticity of demand of apples. What is the priceelasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic?

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

Q: Name three goods or services with highly elastic priceelasticity of supply. Name three goods or services with highly inelastic priceelasticity of supply. Give a brief description of each of these six goods or services.

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