question archive Consider two markets
Consider two markets
Subject:EconomicsPrice:2.88 Bought3
Consider two markets. The initial equilibrium for both markets is the same, P = $2.50, and Q = 29.0. When the price is $6.75, the quantity supplied of motorcycles is 73.0 and the quantity supplied of pancakes is 101.00. The demand for both goods is the same (for simplicity of analysis). Use this information to answer the questions below:
A. Using the midpoint formula, calculate the elasticity of supply for pancakes? Please round to two decimal places.
B. Supply in the market for motorcycles is:
- the same elasticity as supply in the market of pancakes
- more elastic than supply in the market of pancakes
- There is not enough information to tell which will have a higher elasticity
- less elastic than supply in the market of pancakes
