Own-Price Elasticity of Supply (E^s)

question 10

Short Answer

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.

---

Definitions:

Compressed Workweek

An alternative work arrangement allowing employees to work longer hours on fewer days of the week.

Ergonomics Study

The science of designing workstations, products, and systems to fit the people who use them, aiming to increase efficiency and reduce discomfort or injury.

Physical Strain

The bodily stress or discomfort resulting from prolonged or intense physical activity.

Compressed Workweek

A work schedule that allows employees to work the standard number of work hours in fewer days, often by extending daily working hours.