If the inverse demand curve for a good is given by P = 100 – 4Q, the price elasticity of demand is elastic at a price of _____ and inelastic at a price of _____.
$55; $35
$35; $30
$60; $50
$40; $60
2. Demand and supply equations for Good X is given as: Demand: P=6 - (1/50) Q and Supply: P= 1 + (1/100) Q [P: Price, Q: Quantity] i. Given the above information find the equilibrium price and quantity for Good X. ii. What is the point elasticity of demand at equilibrium? Is it elastic, inelastic or unitary elastic? iii. What is the point elasticity of supply at equilibrium? Is it elastic, inelastic or unitary elastic? iv. If the price increases...
1. Demand curve: P = $100 – 2Q Supply curve: P = $10 + 4Q If a tax of $30 per unit is imposed in this market, the dollar price paid by buyers will be: (show the math) a. 10 b. 20 c. 40 d. 60 e. 80
The demand curve for a product is given by P = 400 - 1Q/3 . a. What is the own price elasticity of demand when price is $100? Is demand elastic or inelastic at this price? What would happen to the firm
Market demand for a good is given as Qd = 90 - P. Market supply is given as Q. = 5P. a) What is equilibrium price and quantity traded in this market? a. P = 15 and Q = 75 b. P = 45 and Q = 45 C. P = 40 and Q = 50 d. P = 10 and Q = 70 b) What is the point price elasticity of demand when P 20? a. Ep = 3.45,...
The demand curve for a product is given by P = 400 - 1Q/3. a. What is the own price elasticity of demand when price is $100? Is demand elastic or inelastic at this price? What would happen to the firm
The inverse demand for Tires is: P = 20 + .0005I – 0.5QD The current market price is $11 and average income (I) is $10,000. a) Calculate the markets total Demand? b) Calculate the market’s consumer surplus. Draw the Demand Curve and identify the price quantity and label the axes for price and quantity. c) Calculate the price elasticity of demand. d) Is the Price elasticity of demand calculated in Question #1c elastic or inelastic? e) Calculate the income elasticity...
Demand for a particular good is given by the following equation: P=240-4Q. What is the price elasticity of demand at the point (Q=20, P=160)?
Graph the demand curve for chiropractic visits using the points given in the table below. Answer the questions below and interpret results. (What do results mean? Are they elastic? Inelastic? P Q 20 4 40 3 60 2 80 1 If price rises from $20 to 40, what is the price elasticity of demand at that point and what happens to the quantity demanded of chiropractic visits? Is this elastic or inelastic? If price rises from $60 to $80? $40...
Robert’s demand curve for good X is given by the equation X = 100 - 2PX. (5 points) a. What is the elasticity of demand at the point X=20, PX =40? (5 points) b. If price falls from PX =40 to PY =35, what happens to total spending for X and what does this imply about the elasticity of demand? (5 points) c. Compute the elasticity to verify the answer.
Given the following price-demand function, find the elasticity of demand, E(p), and determine whether demand is elastic, inelastic, or has unit elasticity for the following values of p. (Round your answers to two decimal places.) x = 104,544 - 32p2 (a) p = 43 E(P) = Determine the demand. O elastic O inelastic O unit elasticity (b) p = 30 E(P) = Determine the demand. O elastic O inelastic O unit elasticity (c) p = 50 E() = Determine the...