Solution for QID #6561: Consider the following market supply: QS = c, where c is a c | StudyHelpMe

Consider the following market supply: QS = c, where c is a constant and c > 0. At price P = 0.5(a/b), the absolute value of the price elasticity of this market supply is e. (NOTE: Write your answer in number format, with 2 decimal places of precision level; do not write your answer as a fraction. HINTS: First compute the expression for the price elasticity of this market supply. Next, compute the market quantity supplied at P = 0.5(a/b). Finally, substitute your P and QS values into your expression of the price elasticity of this market supply, to determine the absolute value of the price elasticity at that point.) Show all work.