At a price of $4 per unit, gadgets inc. is willing to supply 20,000 gadgets, while united gadgets is willing to supply 10,000 gadgets. if the price were to rise to $8 per unit, their respective quantities supplied would rise to 45,000 and 25,000. if these are the only two firms supplying gadgets, what is the elasticity of supply in the market for gadgets? a.)1.2 d.)1.0 2.)an increase in the price of tickets to a popular sporting event will increase total revenue if: a.)the ticket is considered to be a luxury b.)there are many substitutes for this form of entertainment c.)the fans are price-conscious d.)the buyers of the tickets are fanatic about the event

Option (a) is correct.

Option (d) is correct.

Explanation:

Average quantity supplied:

= (70,000 + 30,000) ÷ 2

= 50,000

Therefore,

Percentage change in quantity supplied:

= Change in quantity supplied ÷ Average quantity supplied

= (70,000 - 30,000) ÷ 50,000

= 40,000 ÷ 50,000

= 0.8

Average price:

= (8 + 4) ÷ 2

= 6

Therefore,

Percentage change in price:

= Change in price ÷ Average price

= (8 - 4) ÷ 6

= 4 ÷ 6

= 0.667

Hence,

Elasticity of supply in the market for gadgets:

= Percentage change in quantity supplied ÷ Percentage change in price

= 0.8 ÷ 0.667

= 1.2

(b) An increase in the price of tickets to a popular sporting event will increase total revenue if the buyers of the tickets are fanatic about the event.

Hence, they are buying more number of tickets because they like the sporting event.

the first one $24,630

answer; comparing the additional benefits and costs;