ELASTICITY & PRODUCTION FUNCTION

INPUTS OUTPUTS

1 5

2 14

3 21

4 26

5 30

6 33

7 35

8 36

9 36

10 35

• *Graph the Total Physical Product.

INPUTS OUTPUTS

1 5

2 14

3 21

4 26

5 30

6 33

7 35

8 36

9 36

10 35

• *Calculate the Average Physical Product.

• *Graph the Average Physical Product.

INPUTS OUTPUTS

1 5

2 14

3 21

4 26

5 30

6 33

7 35

8 36

9 36

10 35

• *Calculate the Marginal Physical Product.

• *Graph the Marginal Physical Product.

INPUTS OUTPUTS

1 5

2 14

3 21

4 26

5 30

6 33

7 35

8 36

9 36

10 35

• *Graph the Total Physical Product.

• *Graph the Average Physical Product.

• *Graph the Marginal Physical Product.

• *Locate the three stages of Production.

Ralph wants to eat organically grown seashells every day. Because he is rich and famous he bought 10g green shell for 3 dollars yesterday. Today, the price was 4 so he bought 9g, what is his elasticity of demand?

(a)  

A high-end coffee shop introduces a premium coffee line. Over the next few months, they observe that as their customers' average monthly income increases from PHP 30,000 to PHP 33,000, the quantity demanded for the premium coffee increases from 100 to 120 cups daily.

What is the income elasticity of demand for premium coffee? 

(a)  

A farmer produces watermelon and sells it at the local market. Currently, rice sells for PHP 40 per kilogram, and the farmer supplies 500 kg to the market. Due to a bumper harvest, the price falls to PHP 30 per kilogram, and the farmer reduces his supply to 400 kg.

Calculate the price elasticity of supply for the farmer's watermelon.

(a)