Answer:
B - 30
C - 0.412
Step-by-step explanation:
A) Qa=50+p is the supply function and Qb=200-4p is the demand function.
(B) The equilibrium price is the price at which the quantity demanded is equal to the quantity supplied. We can find the equilibrium price by setting Qa equal to Qb and solving for p:
Qa = Qb
50 + p = 200 - 4p
5p = 150
p = 30
Therefore, the equilibrium price is 30.
(C) The price elasticity of supply is a measure of how responsive the quantity supplied is to changes in price. We can calculate the price elasticity of supply using the following formula:
Price elasticity of supply = (percent change in quantity supplied) / (percent change in price)
To find the price elasticity of supply for this case, we can first find the slope of the supply function Qa=50+p. The slope of the supply function is 1, because for every 1 unit increase in price (p), the quantity supplied (Qa) increases by 1 unit.
Next, we can use the midpoint method to find the percent change in quantity supplied and the percent change in price. Let's say the initial price is 30 and the initial quantity supplied is 80 (Qa=50+30). If the price increases to 40, the quantity supplied increases to 90 (Qa=50+40).
The percent change in quantity supplied is (90-80)/((80+90)/2) = 10/85 = 0.118
The percent change in price is (40-30)/((30+40)/2) = 10/35 = 0.286
Substituting these values into the formula above, we get:
Price elasticity of supply = 0.118 / 0.286 = 0.412
Therefore, the price elasticity of supply for this case is 0.412. This means that for every 1% increase in price, the quantity supplied increases by 0.412%.