### Understanding Supply and its Rate of Change with Respect to PriceTo find the supply $ S(p) $ and the instantaneous rate of change of supply with respect to price when the price is 40 dollars, the following problem is presented:\[ S(p) = \frac{100p}{0.7p + 3} \]where $ p $ is the price in dollars.1. **Calculate the Supply at $ p = 40 $ Dollars** \[ S(40) = \_\_\_\_\_ \text{ players} \]2. **Calculate the Instantaneous Rate of Change of Supply with Respect to Price at $ p = 40 $ Dollars** \[ S'(40) = \_\_\_\_\_ \text{ players/dollar} \]3. **Estimate the Increase in Supply if the Price Rises from $ p = 40 $ to $ p = 50 $ Dollars** Use your answers from parts 1 and 2 to estimate the increase in supply. Round your answer to the nearest integer. \[ \text{Supply increase} \approx \_\_\_\_\_ \text{ players} \]This exercise helps in understanding how changes in price can impact supply, an important concept in economic theory.### Explanation of the Procedure and EstimationsTo solve the problem step by step:- **Step 1: Calculate $ S(40) $** Substitute $ p = 40 $ into the supply function: \[ S(40) = \frac{100 \times 40}{0.7 \times 40 + 3} = \frac{4000}{28 + 3} = \frac{4000}{31} \] Solve to get the supply at 40 dollars.- **Step 2: Calculate $ S'(40) $** Differentiate $ S(p) $ with respect to $ p $ to find $ S'(p) $. This involves applying the quotient rule of differentiation. Then, substitute $ p = 40 $ into $ S'(p) $.- **Step 3: Estimate Increase in Supply** Using the derivative $ S'(p) $ at $ p = 40 $, estimate the increase in supply when the price increases from 40 to 50 dollars with the following approximation: \[ \text

Answered: Image /qna-images/answer/9fae7bfb-2158-4fd6-88de-f87469301aeb.jpg

100p 0.7p + 3 S(p) = Find the supply and the instantaneous rate of change of the supply with respect to price when the price is 40 dollars. S(40)| = players s'(40)|= players/dollar Use your previous answers to estimate the increase in supply if the price rises from 40 to 50 dollars. Round your answer to the nearest integer. Supply increase | players

100p 0.7p + 3 S(p) = Find the supply and the instantaneous rate of change of the supply with respect to price when the price is 40 dollars. S(40)| = players s'(40)|= players/dollar Use your previous answers to estimate the increase in supply if the price rises from 40 to 50 dollars. Round your answer to the nearest integer. Supply increase | players

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

ЕОC 6.03 A 45% fall in the price of computers leads to a 20% rise in the amount of computers purchased by customers. Using this information, we would expect total revenue to when prices drop. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. decrease increase not change d increase or decrease (not enough information)
A and b X = 10 Y = 19
This is similar to Section 3.9 Problem 2: The elasticity of a good is E = 0.8. (a) A 2% price increase will cause the demand to decrease Correct: Your answer is correct. by 16 Incorrect: Your answer is incorrect. %. (b) A 2% price decrease will cause the demand to increase Correct: Your answer is correct. by 16 Incorrect: Your answer is incorrect. %.
How is tomato related to cabbage? Compute and interpret the cross elasticity of supply of cabbage with respect to the dealer’s price of complete fertilizer. If the price of complete fertilizer increases by 20 percent, by how much will the supply of cabbage change, holding other factors constant?
In a certain market, the demand for peach was given as QD = 400 -3P, the first day of marketing in 2020, in August 2020, the demand for peach is now given as QD = 200 -3P. a)From the statement above tell in one sentence the change in demand; considered the indicator? b)What factors are responsible for the change in demand. Support your answers by sketching the equations above on the same graph.
According to studies undertaken by the U.S. department of agriculture, the price elasticity of demand for cigarettes is about +0.5. Suppose a major brokerage firm advised its clients to buy cigarette stock under the assumption that, if consumer income rise by 50 percent as expected over the next decade, cigarette sales would double. Based on the fundamental economic principles on income elasticity of demand, a reasonable reaction to this investment advice would be?
Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two cameras are as follows (DS = demand for the Sky Eagle, Ps is the selling price of the Sky Eagle, DH is the demand for the Horizon and PH is the selling price of the Horizon): Ds = 230 - 0.5 Ps + 0.38 PH DH = 260 + 0.1 Ps - 0.62 PH The store wishes to determine the selling price that maximizes revenue for these two products. Select the revenue function for these two models. Choose the correct answer below. (i) Ps Ds + PHDH = PH(260 - 0.1 Ps - 0.62 PH) + Ps(230 - 0.5 Ps + 0.38 PH) (ii) Ps Ds - PH DH = Ps(230 - 0.5 Ps + 0.38 PH) - PH(260 - 0.1 Ps - 0.62 PH) (iii) Ps Ds + PH DH = Ps(230 - 0.5 Ps + 0.38 PH) + PH(260 + 0.1 Ps - 0.62 PH) (iv) Ps Ds - PH DH = Ps(230 + 0.5 Ps + 0.38 PH) - PH(260 - 0.1 Ps - 0.62 PH) Answer: Option 3 Find the prices that maximize revenue. Do not round intermediate calculations. If required, round your answers to two decimal places. Optimal Solution:…
An increase in the price of gasoline will : select one: a) decrease the supply of gasoline b) decrease the quantity of gasoline supplied c) increase the supply of gasoline d) increase the quantity of gasoline supplied
A particular commodity has a price-demand equation given by p = √18,444 - 417x, where x is the amount in pounds of the commodity demanded when the price is p dollars per pound. (a) Find consumers' surplus if the equilibrium quantity is 40 pounds. (Round your answer to the nearest cent if necessary.) (b) Find consumers' surplus if the equilibrium price is 17 dollars. (Round your answer to the nearest cent if necessary.) $
With this graph given, What are the implications of this to both the sellers and the consumers?