Own-Price Elasticity of Supply (E^s).
Suppose that the price of pizza increases from P₀=usd 6/pizza to P₁=usd 10/pizza, resulting in an increase in pizzas produced from Q₀= 10 pizzas to Q₁= 12 pizzas. A. Calculate ε at the initial values of P and Q. B. Is pizza supply elastic or inelastic? Demonstrate and explain. C. Is the pizza firm in the immediate run, short run, or long run? Explain.

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The Answer of Own-Price Elasticity of Supply (E^s). Suppose that the price of pizza increases from P₀=usd 6/pizza to P₁=usd 10/pizza, resulting in an increase in pizzas produced from Q₀= 10 pizzas to Q₁= 12 pizzas. A. Calculate ε at the initial values of P and Q. B. Is pizza supply elastic or inelastic? Demonstrate and explain. C. Is the pizza firm in the immediate run, short run, or long run? Explain.

Own-Price Elasticity of Supply (Es)

Own-Price Elasticity of Supply (E^s)