Dominick Salvatore Schaums Outline of Microeconomics, 4th edition Schaums Outline Series 2006

58 THE MEASUREMENT OF ELASTICITIES [CHAP. 3
Also to be noted is that for any point on S y to the left of C (e.g., point D), the tangent would cross the price axis and
e s . 1. For any point to the right of C (e.g., point B or point A), the tangent would cross the quantity axis and e s , 1.
Fig. 3-14
3.21 From the supply schedule in Table 3.19, find arc elasticity for a movement (a) from point A to point C,
(b) from C to A, and (c) midway between A and C. (d) Also find price elasticity of supply at point B.
Table 3.19
Point A B C D F
P x ($) 6 5 4 3 2
Q x 6000 5500 4500 3000 0
Fig. 3-15
(a) From A to C, e s ¼
1500
2
6
6000
¼ 0:75
(b) From C to A, e s ¼ 1500
2
4
4500
ffi 0:67
(c) Midway between A and C (point B 0 in Fig. 3.15)
e s ¼ 1500
10
2 10,500
ffi 0:714 ffi 0:71
(d ) At point B, e s ¼ HG
GB GB
OG ¼ HG
OG ¼ 4000 ¼ 0:709 ffi 0:71
5500
Notice, in Fig. 3-15, that the tangent to S y at point B crosses the quantity axis and S y is inelastic at point B.
3.23 On a single set of axes, draw a straight-line supply curve which is elastic, one that is inelastic, one that
has unitary elasticity, one that has negative elasticity, one that has zero elasticity and one that has infinite
elasticity.