The supply function of a certain commodity is:Q = a + bP 2 + R 1 2

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The supply function of a certain commodity is:Q = a + bP
2 + R
1
2 (a < 0, b > 0)
Here: R is rainfall

(i) Find price elasticity of supply and rainfall elasticity of supply.
(ii) How do the elasticities vary with P and R?

Related Book For answer-question

Economics Principles and Policy

ISBN: 978-0538453653

12th edition

Authors: William J. Baumol, Alan S. Blinder

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Posted Date: Aug 26, 2021 01:22 PM

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The supply function of a certain commodity is:Q = a + bP 2 + R 1 2

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Economics Principles and Policy

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