G Consider two markets: the market for motorcycles and the market for pancakes. The initial equilibrium for both markets is the same, the equilibrium price is $ 5.50 , and the equilibrium quantity is 37.0 . When the price is $ 8.75 , the quantity supplied of motorcycles is 69.0 and the quantity supplied of pancakes is 105.0 . For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for pancakes. Please round to two decimal places.

Solution:

Given,

The equilibrium price is $5.50 (P)

The equilibrium quantity is 37.0 (Q)

The price is $ 8.75

(percentage change in quantity)/(percentage change in price)

So Motorcycles would be the following:

[(63 - 29)/29]/[($12.75 - $0.50)/$0.50]

=62 / 11.75

= 5.27

Evaluate, then do the same for pancakes.

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23