Results for A Shoe Factory Has An Elasticity Of Supply Of .5 As The Price Of The Shoe Rise From 50 To 75. If The Factory Produced 100000 Shoes At A Market Price Of 50 How Many Will Be Produced Aty The?

To calculate the change in quantity supplied, we can use the formula for price elasticity of supply: (E_s = \frac{%\Delta Q}{%\Delta P}). The percentage change in price is ((75 - 50) / 50 = 0.5) or 50%. Given the elasticity of supply is 0.5, we can set up the equation: (0.5 = \frac{%\Delta Q}{0.5}), which gives us (%\Delta Q = 0.25) or 25%.

Starting from 100,000 shoes, a 25% increase means the factory will produce (100,000 \times 1.25 = 125,000) shoes at the price of 75.