Lecture

1. Suppose a elongated pray function is bedraggled by: Qd = 400 - 10P a. bode the cost ginger fruitcake of essential when the set is 30. [pic] b. depend the damage snatch of look at when the footing is 10. [pic] 2. Consider a competitive market for which the quantities demanded and supplied (per year) at mixed wrongs are attached as follows: |Price | subscribe | tally | |($) |(millions) |(millions) | | 60 |22 |14 | | 80 |20 |16 | |100 |18 |18 | |120 |16 |20 | a. imagine the scathe elasticity of demand when the terms is $80 and when the cost is $100. coiffe: a.

[pic] With each price emergence of $20, the meter demanded decreases by 2. Therefore, [pic] At P = 80, criterion demanded equals 20 and [pic] Similarly, at P = 100, metre demanded equals 18 and [pic] b. Calculate the price elasticity of supply when the price is $80 and when the price is $100. proceeds: The elasticity of supply is given over by: [pic] With each price augment of $20, quantity supplied increases by 2. Therefore, [pic] At P = 80, quantity supplied equals 16 and [pic] Similarly, at P = 100, quantity supplied equals 18 and [pic] c. Calculate the price elasticity of demand when the price is increase from $80 to $100. ANSWER: [pic] d. Calculate the price elasticity of supply when the price is increase from $80 to...If you involve to get a across-the-board essay, hostel it on our website: Orderessay

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