Bioeconomices

By

DR: EMAN FAKHRY YOUSIF.

Assistant professor Of Agriculture Economics
Sec: supply
Example :Calculate market equilibrium
market equilibrium
 Example 2
• Use the following supply function and calculate each of the following:
Qx=20 , px=3
Qx= 3+0.8 px
Calculate the elasticities of supply
 PES = % change in qs ÷ % change in P
∆𝐪 𝐏
= ×
∆𝐏 𝐪

• PES= 0.8 X (3/20) = 0.12 ( inelastic supply)