Question: 6. The supply schedule for a banana shop's production is given in the table below. Price () Quantity Supplied (Qs) (ones) 1 2 3

6. The supply schedule for a banana shops production is given in the table below. a) What does the price elasticity of suppl

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)

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