Unformatted text preview: through the origin with slope a ). Calculate the price elasticity of supply , s . (c) Show that if a linear inverse supply function has a positive vertical intercept, then it is elastic, i.e., ε s > 1. Hint: Write the inverse supply function as P s = aQ s + b , where b > 0 is the positive vertical intercept....
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 Summer '07
 Dr.ShomuBanerjee
 Microeconomics, Price Elasticity, Supply And Demand, inverse supply function, Shomu Banerjee, linear inverse supply

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