If the supply equation is given as Qs = -200+10P, the price elasticity of supply between R40 and R50, calculated using the arc elasticity of demand is

Arc elasticity of demand is ((Q2 – Q1)/midpoint Q)/((P2 – P1)/midpoint P) Q1=-200+10P = 40, P=24 Q2=-200+10P = 50, P=25 Arc elasticity of demand = ((50-40)/45)/((25-24)/24,5)=5.44

If a decrease in price from R50 to R40 causes the quantity demanded to increase from 2500 to 3000 units, then using the arc elasticity of demand, the price elasticity...

1) PED = (% change in quantity demanded) / (% change in price) = = ((3000-2500)/2500) / ((40-50)/50) = -1

E_d^p=((Q2-Q1)/((Q2+Q1)/2))/((P2-P1)/((P2+P1)/2))=((3000-2500)/((3000+2500)/2))/((40-50)/((40+50)/2))=0.18/(-0.22)=-0.82

4. 3.0 ((-200+350+200-250)/((-400+600)/2)÷(35-25)/((35+25)/2))

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3) quantity demanded 4) directly

300-3p=03p=300p=100