From Table 2.2, calculate the elasticity of supply between these points: I. A and B II. D and E. State the nature of elasticity in (a)i above. Briefly explain any four types of elasticity of demand.

The midpoint formula for price elasticity of supply (PES) is:

For points A ($P_1=5, Q_1=10$) and B ($P_2=10, Q_2=25$):
Percentage change in quantity supplied:

Percentage change in price:

Now, calculate PES:

The elasticity of supply between A and B is $\boxed{\frac{9}{7} \text{ or approximately } 1.286}$.

For points D ($P_1=20, Q_1=60$) and E ($P_2=25, Q_2=75$):
Percentage change in quantity supplied:

Percentage change in price:

Now, calculate PES:

The elasticity of supply between D and E is $\boxed{1}$.

For (a)(i), the elasticity of supply is $9/7 \approx 1.286$. Since this value is greater than 1, the supply is elastic.

• Price Elasticity of Demand (PED) measures how much the quantity demanded of a good responds to a change in its price.
• Income Elasticity of Demand (YED) measures how much the quantity demanded of a good responds to a change in consumers' income.
• Cross-Price Elasticity of Demand (XED) measures how much the quantity demanded of one good responds to a change in the price of another good.
• Advertising Elasticity of Demand (AED) measures how much the quantity demanded of a good responds to a change in advertising expenditure.