Supply

Table 1:Supply schedule for bacon

($/ pound)

Table 2:Supply schedule for bacon

($/pound)

Price

Quantity

PRICE $

QUANTITY

$1.00

4.75

$2.50

10

$2.50

8

$3.75

12.5

$3.75

10.5

$4.00

15

$4.00

13

$5.60

16.5

$5.60

16

$12.25

19

Show all your work to answer the following questions.

1. Using Table 1,
2. Calculate the supply curve if P1= $5.60 and P2= $2.50
3. Show the mathematical check for your derived supply equation using two different price points from the supply schedule.
4. Calculate the elasticity of supply using those points on the supply curve.
5. What does the elasticity that you calculated tell you about supply?

1. Using Table 2,
2. Calculate the supply curve if P1= $12.25 and P2= $4.00
3. Show the mathematical check for your derived supply equation using two different price points from the supply schedule.
4. Calculate the elasticity of supply using those points on the supply curve.
5. What does the elasticity that you calculated tell you about supply?