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    5. The equation for a supply curve is P = 3Q – 8. What is the elasticity in moving from a price of 4

    Question

    The equation for a supply curve is P = 3Q – 8. What

    is the elasticity in moving from a price of 4 to a price of 7?
    A 3 Correct Answer Incorrect Answer
    B 4 Correct Answer Incorrect Answer
    C 1/3 Correct Answer Incorrect Answer
    D 2.9 Correct Answer Incorrect Answer
    E 6 Correct Answer Incorrect Answer

    Solution

    dP/dQ = 3 dQ/dP = 1/3 es = (1/3)* 4/4 [Q at P=4 is also 4] =1/3

    Practice Next
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