Question 1 Report
The table below presents the price and quantity supplied by a palm oil producer. Use the information in the table to answer the following questions.
| Price ($) | Quantity Supplied (gallons) |
| 6 | 200 |
| 12 | 300 |
| 18 | 400 |
| 20 | 500 |
| 24 | 600 |
(a) If the price of palm oil falls from $20.00 to $18.00, calculate the price elasticity of supply. (4 arks)
(b) Interpret your answer in question 2(a) above. (2 marks)
(c) Study the extract below and answer the following questions. The price of palm oil remains at $6.00 per gallon and an increase in the price of a related product causes an increase in the supply of palm oil:
(i) Give a graphical presentation to illustrate this change. (6 marks)
(ii) Indicate the type of supply for the two products. (2 marks)
(d) State reasons that can cause a change in supply. (6 marks)