6. The supply schedule for a banana shop's production is given in the table below. Price...

 

Transcribed Image Text:

6. The supply schedule for a banana shop's production is given in the table below. Price (£) Quantity Supplied (Qs) (ones) 1 2 3 4 5 6 7 0 15 21 28 36 45 56 What does the price elasticity of supply (PES) measure? Write down the full formulae used to calculate PES. a) b) (2 marks) c) Assume that the current market price is £2. Calculate the price elasticity of supply if the price goes up to £3 (show all your calculations). (4 marks) (2 marks) d) Using the answer from your calculation, is supply elastic, unit-elastic, or inelastic? Explain why. (3 marks) e) Based on your calculation and analysis, draw the supply curve for bananas (4 marks) 6. The supply schedule for a banana shop's production is given in the table below. Price (£) Quantity Supplied (Qs) (ones) 1 2 3 4 5 6 7 0 15 21 28 36 45 56 What does the price elasticity of supply (PES) measure? Write down the full formulae used to calculate PES. a) b) (2 marks) c) Assume that the current market price is £2. Calculate the price elasticity of supply if the price goes up to £3 (show all your calculations). (4 marks) (2 marks) d) Using the answer from your calculation, is supply elastic, unit-elastic, or inelastic? Explain why. (3 marks) e) Based on your calculation and analysis, draw the supply curve for bananas (4 marks)

Answer rating: 100% (QA)

a The price elasticity of supply measure how the quantity supplied by the ... View the full answer