Afirm’s elasticity of supply is 0.5. at the original market price of $10, the quantity supplied by the firm is 500 units. the market price then rises to $11.

what will be the firm’s revenue after the price rise in price by calculating? explain your answer and show your calculation.

The firm's revenue after the price rise will be US$ 5,775

Explanation:

1. For calculating the quantity supplied after the price rise, we use the following formula:

Price elasticity of demand (PED) =

Percentage change in quantity demanded/Percentage change in price

2. Let's replace the formula with the data given:

0.5 = Percentage change in quantity demanded/10

Percentage change in quantity demanded = 0.5 * 10

Percentage change in quantity demanded = 5%

3. Let's find out the new quantity demanded after the price rise:

Quantity after the price rise = (Quantity before the price rise * Percentage change in quantity demanded) + Quantity before the price rise

Quantity after the price rise = (500 * 5%) + 500

Quantity after the price rise = 25 + 500

Quantity after the price rise = 525

4. For calculating the new revenue, we take the new price and the quantity after the price rise:

New revenue = New price * Quantity after the price rise

New revenue = 11 * 525

New revenue = US$ 5,775

After the price rise from US$ 10 to US$ 11, the company will supply 525 units that will generate US$ 5,775 of revenue.  

Step-by-step explanation:

Your question doesn't match the picture. OCR is often inaccurate!—not that it matters much in this case. None of the choices is correct.

(20-4)·6² + 2 + 18 = 16·6² + 2 + 18

= 16·36 + 2 + 18

= 576 + 2 + 18

= 578 + 18

= 596