+89 Suppose a supply function is given by
Q = 200 − 4 P − 0.2 P^2 .
(i) Find the price elasticity of supply if the current price is P = 15.
(ii) What is the percentage change in supply if the price rises by 3%?
(b) A snooker club has 150 members each paying e 60 membership fee per month. The club would like to raise this fee, but a market survey predicts that for every price increase of e5 it will lose 10 members. What should the monthly membership fee be to maximize the revenue?
