Compute the expression for price elasticity of market supply

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Reference no: EM131009836

Consider the following market supply: QS = c, where c is a constant and c > 0. At price P = 0.5(a/b), the absolute value of the price elasticity of this market supply is [e]. (NOTE: Write your answer in number format, with 2 decimal places of precision level; do not write your answer as a fraction. HINTS: First compute the expression for the price elasticity of this market supply. Next, compute the market quantity supplied at P = 0.5(a/b). Finally, substitute your P and QS values into your expression of the price elasticity of this market supply, to determine the absolute value of the price elasticity at that point.) Show all work.

Reference no: EM131009836

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