Respuesta :

Ritmeks

Answer:

1.33

Explanation:

At a price of $200, a cell phone company manufactures 300,000 phones

At a price of $150, the company produced 200,000 phones

P1= $200 , Q1= 300,000 units

P2= $150 , Q2= 200,000 units

Price elasticity = change in quantity / change in price

Change in quantity= Q2-Q1/(Q2+Q1/2)

= 200,000-300,000/(200,000+300,000/2)

= -100,000/500,000/2

= -100,000/250,000

= -0.4

Change in price= P2-P1/(P2+P1/2)

= 150-200/(150+200/2)

= -50/(350/2)

= -50/175

= -0.3

Price elasticity= -0.4/-0.3

= 1.33

Hence the price elasticity is 1.33

chilljain33

The price elasticity of supply when the firm produces 200,000 at a price of $150 per cell phone will be 1.33. The price elasticity of supply is a concept of economics useful in calculation of efficiency in the organization.

The price elasticity refers to the price undergone with the comparison of two different prices and two different rates of production at given price and predetermined period.

  • The price elasticity of supply however relates to the change in response by the cost and production by a change in cost of production per unit and the supply that is effected at such price being offered.

  • The calculation of price elasticity in this case can be easily calculated with the information provided in the query above.

  • [tex]\rm Quantity\ at\ price\ of\ 200\ per\ unit=\ 300000[/tex]

  • [tex]\rm Quantity\ Produced\ at\ 150\ per\ unit=\ 200000[/tex]

  • We know the formula that the price elasticity of supply is obtained by dividing the difference of change in price divided by change in quantity produced.

  • [tex]\rm Price\ Elasticity\ of\ Supply= \dfrac{Change\ in\ Quantity}{Change\ in\ Price}[/tex]

  • Putting the values in the equation we get,

  • [tex]\rm Change\ in\ price= \dfrac{150-200}{\dfrac {150+200}{2}}[/tex]

  • [tex]\rm Change\ in\ Price= -0.3[/tex]

  • Now calculating Change in quantity

  • [tex]\rm Change\ in\ Quantity= \dfrac{200000-300000}{\dfrac {200000+300000}{2}}[/tex]

We get,

  • [tex]\rm Change\ in\ Quantity= -0.4[/tex]

  • Putting the values obtained in the formula we can calculate as ,

  • [tex]\rm Price\ Elasticity\ of\ Supply= \dfrac{-0.4}{-0.3}[/tex]

  • So now we finally get the price elasticity of supply as

  • [tex]\rm Price\ Elasticity\ of\ Supply= 1.33[/tex]

Hence, the value obtained for Price Elasticity of Supply for cell phones produced in two different quantities at two different prices is 1.33.

To know more about Price Elasticity of Supply, refer to the link below.

https://brainly.com/question/6122986

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