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a) Given that:
QX = 9 - ½ P2
QY = 8P + ½ P2
Required:
i) Identify which of the two functions is a demand and a supply function.
ii) Compute the point elasticity of demand and the point elasticity of supply at the equilibrium position.
b) With the aid of diagrams, explain the importance of the concept of elasticity of supply.
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