Q1 on a supply and demand diagram show equilibrium price equilibrium quantity and the total revenue received by producers Q2 how is the price elasticity of supply calculated? explain whaty is measures. Solution 1. on graph always we should take price/cost/ value on the X axis and demand/quantity/demand on Y axis. supply curve starts from 0 towards its right, and demand curve starts from some price and it has downwards slope towards its right. the point where these two curves intersect each other, that point is called equilibrium point. at this point the firm fixes the level of output and the price to the product. 2. it can be calcuated by= cahnge in price/change in supply.

1. Q1 on a supply and demand diagram show equilibrium price equilibrium quantity and the total
revenue received by producers
Q2 how is the price elasticity of supply calculated? explain whaty is measures.
Solution
1. on graph always we should take price/cost/ value on the X axis and demand/quantity/demand
on Y axis.
supply curve starts from 0 towards its right, and demand curve starts from some price and it has
downwards slope towards its right. the point where these two curves intersect each other, that
point is called equilibrium point.
at this point the firm fixes the level of output and the price to the product.
2. it can be calcuated by= cahnge in price/change in supply