In the coffee market, you notice that when the price of a kilo of coffee changed from $28 to $16 the quantity of coffee supplied changed from 65 to 40 kilos, all else held constant. What is (own) price elasticity of supply for coffee?

In the coffee market, you notice that when the price of a kilo of coffee changed from $28 to $16 the quantity of coffee supplied changed from 65 to 40 kilos, all else held constant. What is (own) price elasticity of supply for coffee?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 24SQ: Suppose that when price is 10, quantity supplied is 20 units, and when the price is 6, the quantity...

See similar textbooks

Related questions

Q: List the factors that affect price elasticity of demand and describe some applications of price…

A: Elasticity will change when the % change in DD due to a certain % change in price will change. For…

Q: At a price of $10, quantity demanded is 30 units. When the price rises to $11, quantity demanded is…

A: The price elasticity of demand demonstrates the degree of responsiveness Qd (quantity demanded) of a…

Q: The price decreases from $2,000 to $1,800. Quantity demanded per year increases from 5000 to 6000…

A: Elasticity is a measurement of a variable's sensitivity to changes in another variable; most…

Q: What is price elasticity of demand? Explain all its dimensions by giving suitable examples and…

A: Price elasticity of demand is the static concept which does not include any time element in it. The…

Q: Explain any three types of price elasticity of demand and any three types of price elasticity of…

A: Concept of elasticity of demand is used in economics to calculate the change in a variable due to…

Q: An economist doing an analysis on the market for original paintings finds that a 7% increase in…

A: Price elasticity of supply:Price elasticity of supply can be calculated as follows:

Q: Supposed as the price of an item increases by 10% the quantity supplied of that same item increases…

A: Elasticity of supply depicts how much producer responds with the change in the price level.

Q: Suppose that you are given the following demand and supply functions, respectively: Qd=σ Qs=P Where…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Gasoline & Politics In the spring of 2008, Senators John McCain and Hillary Clinton (who were…

A: If tax is cut, price of good declines. So, consumers benefit if demand is elastic. If supply is…

Q: For a change in the price of coffee from $2 per 8 oz cup to $1 per 8 oz cup, the ELASTICITY OF…

A: Price Elasticity of Supply measures the percentage change in quantity supplied due to percentage…

Q: The equation for a supply curve is P=3Q–8.What is the elasticity in moving from a price of 4 to a…

A: Elasticity refers to the responsiveness of one variable to changes in another variable; given that…

Q: The price of raisins drops from $16 to $5 per kilogram. As a result of this change, the quantity…

A: Price elasticity of supply measures how much the quantity supplied of a good responds to a change in…

Q: Describe in detail the factors that affects supply and demand elasticity

A: Factors that affects the elasticity of supply: 1)Price of the Good: The elasticity of supply of a…

Q: If the quantity of bread supplied increased by 12 percent when the price increased by 8 percent,…

A: Elasticity of supply refers to Percentage change in quantity supplied of a particular product with…

Q: Suppose, Atlantic air travel in business class has an estimated elasticity of demand of 0.40 while…

A: Percentage change in quantity demanded can be measured when the change in price and elastic of…

Q: The elasticity of supply is +0.34 Comment on the given value of the elasticity of supply whether…

A: Elasticity of supply is given as:- Es = percent change in quantity supplied / percent change in…

Q: Suppose the supply equation is: Q = 15 + 0.50p. What is the price elasticity of supply if the market…

A: Answer: Given, Supply equation: Q=15+0.50p Price = $2 Let us first find the quantity supplied at…

Q: suppose that in a week the price of Greek yogurt increases from $1.25/lb to $1.75/lb.At the same…

A: Price elasticity of supply (PES) is an economic measure of the responsiveness (senstivity) of…

Q: Calculate the price elasticity of supply for each of the following combinations of price and…

A: Price elasticity of supply(PES) measures the change to the supply of services and goods caused by a…

Q: Suppose the price of salt per packet falls from Tk. 32 to Tk. 20. Quantity demanded of salt rises…

A: Price elasticity (Ed) = [(Q2 - Q1) / (Q2 + Q1)] / [(P2 - P1) / (P2 + P1)] When |Ed| > 1, demand…

Q: When the price of a good increases by 14%, the quantity demanded decreases by 9%. What is the…

A: The elasticity is the responsive of percentage change in quantity demanded because of the percentage…

Q: When the price of paper increases from $100 to $104 per ton, the quantity supplied increases from…

A: The price elasticity of supply refers to the changes in the quantity supplied with the changes in…

Q: Suppose the price elasticity of demand for heating oil is 0.2 in the short run and 0.7 in the long…

A: Answer to the question is as follows:

Q: Suppose that business travelers and vacationers have the following demand for airline tickets from…

A: Price elasticity of demand measures the percentage change in quantity demanded due to a percentage…

Q: If a fixed quantity of a good is available, and no more can be made, what is the price elasticity of…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Rising world wholesale fair-trade prices force the local Dunkin' Donuts franchise to raise its price…

A: Cross elasticity of demand (exy) is defined when due to change in price of commodity X , quantity…

Q: If the price of a good increases by 10% and the quantity supplied increases by 30%, what is the…

A: Given: % Increase in price=10% % Increase in quantity supplied=30%

Q: If a 10% increase in price leads to a 40% decrease in quantity demanded, what is the value of price…

Q: How is the price elasticity of supply calculated? Explain what it measures.

A: Price elasticity of supply is the measure of responsiveness of producers and resource suppliers to…

Q: Calculate the elasticity of supply when the price rise is given as 30% and the quantity supplied…

A: We must remember that the elasticity of supply shows the law of supply which stated that price and…

Q: Carefully explain the difference between the Law of Demand and Price Elasticity of Demand.

A: The demand curve shows the amount of goods and services that a consumer is willing to buy at…

Q: Suppose the supply equation is: Q = 12 + 0.70p. What is the price elasticity of supply if the market…

A: Price elasticity of supply: - Price elasticity of supply measures the responsiveness of change in…

Q: If in response to a 6% increase in price quantity supplied increases by 9% what shall be the degree…

A: The quantity supplied of a good is generally defined as the amount of the good firms are willing and…

Q: Suppose that many varieties of lettuce have been damaged in a particular season by disease. Only…

A: According to the question, percentage change in price of green leaf lettuce is 50% and percentage…

Q: The three-day nonstop untimely heavy rain caused by the cyclonic storm ‘Jawad’ damaged many crops…

A: The three-day nonstop untimely heavy rain caused by the cyclonic storm ‘Jawad’ damaged many crops…

Q: Homework (Ch 07) 10 9 8 PRICE (Dollars per pole per year) .0 0 7 8 9 10 QUANTITY (Thousands of…

A: Price elasticity of demand refers to the how much percentage change in quantity demanded will be…

Q: In an effort to curb gun violence, some US cities are implementing gun buyback programs. Local…

A: Its a great initiative. However, it would only work in the case of elastic demand. Elastic demand is…

Q: Suppose the supply equation is: Q = 11 + 0.40p. What is the price elasticity of supply if the market…

A: The price elasticity of supply is a measure used in economics to show the responsiveness, or…

Q: Suppose that an increase in the price of melons from $1.00 to S1.50 per pound increases the quantity…

A: The price elasticity of supply of good measures the responsiveness of quantity supplied to commodity…

Q: As the price of good X rises from RM 10 to RM 12 , the quantity demanded of good Y rises from 100…

A: Two goods are said to be substitute when rise in price if one good lead to rise in demand of…

Q: Suppose the price elasticity of demand for heating oil is 0.2 in the short run and 0.7 in the long…

Q: What are the three determinants of the price elasticity of supply?

A: Supply is the amount of output that producers or sellers are willing to sell in the market at the…

Q: Suppose that when the price of laundry detergent decreases from $4.10 to $3.50, quantity supplied…

Q: Identify three factors that are likely to affect the price elasticity of supply for rice. Clearly…

A: The price elasticity of supply measures the percentage change in the quantity supplied of a good or…

Q: If the price of sugar rises from $16 per kg to $18 per kg. the quantity supplied expands from 100kg…

A: Following is the given values: Initial price, P = $16 Final price, P1 = $18 Initial supply, Q = 100…

Q: A 40% increase in price led the quantity supplied of bicycles in a competitive market to increase…

A: Elasticity of supply measures the responsiveness of quantity supplied with respect to change in…

Q: Suppose that many varieties of lettuce have been damaged in a particular season by disease. Only…

A: Answer: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Question

In the coffee market, you notice that when the price of a kilo of coffee
changed from $28 to $16 the quantity of coffee supplied changed from 65
to 40 kilos, all else held constant. What is (own) price elasticity of supply
for coffee?

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is the difference between the demand and the quantity demanded of a product, say milk? Explain in words and show the difference on a graph with a demand curve for milk.
Suppose the cross-price elasticity of apples with respect to the price of oranges is 0.4, and the price of oranges falls by 3. What will happen to the demand for apples?
Using the midpoint formula for calculating the elasticity of supply, if the price of a good rose from $95 to $105, what would be the elasticity of supply if the quantity supplied changed from a. 38 to 42? b. 78 to 82? c. 54 to 66?
Would you expect supply to play a more significant role in determining the price of a basic necessity like food or a luxury like perfume? Explain. Hint: Think about how the price elasticity of demand will differ between necessities and luxuries.
Can you think of an industry (or product) with near infinite elasticity of supply in the short term? That is, what is an industry that could increase Qs almost without limit in response to an increase in the price?
The equation for a supply curve is 4P=Q. What is the elasticity of supply as price rises from 3 to 4? What is the elasticity of supply as the price rises from 7 to 8? Would you expect these answers to be the same?
When someones kidneys fail, the person needs to have medical treatment with a dialysis machine (unless or until they receive a kidney transplant) or they will die. Sketch a supply and demand diagram, paying attention to the appropriate elasticities, to illustrate that the supply of such dialysis machines will primarily determine the pure.
Explain why using the midpoint formula for calculating the elasticity of demand gives the same result whether price increases or decreases, but using the initial price and quantity instead of the average does not.
What is the price elasticity of supply? Can you explain it in your own words?
What is the price elasticity of demand? Can you explain it in your own words?
From the data in Table 5.6 about supply of alarm clocks, calculate the price elasticity of supply from: point J to point K, point L to point M, and point N to point P. Classify the elasticity at each point as elastic, inelastic, or unit elastic.