AGEC 105 EQ8 October 17, 2012 This EQ is worth 4 points.

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## AGEC 105 EQ8 October 17, 2012 This EQ is worth 4 points.

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**Question 1 (1pt)**Given the market supply schedule below: Calculate the own-price elasticity of supply between points C and D. Show all work.**Question 2 (2pt)**Suppose that P = $25/unit and the profit maximizing output is 350 units. Also suppose that the corresponding ATC = $16/unit. Calculate the maximum profit that this firm can earn. Show all work.**Question 3 (1pt)**Consider the following diagram: On the basis of this diagram, producer surplus is equal to $___________ million. P S $4 $2 Q (million) 30