Question

w iece Department 1. Qc-400-10p and Qs-200+20p describes a market for safety pins. Midterm FA 2019 A. Find equilibrium price and quantity for this free market. (Illustrate graphically all points.) B. Illustrate an increase in the cost of labor on your graph. 2. Directions: Calculate the cross price elasticity of demand for each market C ity results elastie, inelastic, unit elastie for each A. Market for tablets has an increase in the quantity demanded by 49N as the price of keyboards declined by 14% B. Market for videogame consoles has an increase in quantity demanded by INN as the price of videogames declined by 8%. C. Market for footwear has an increase in the quantity demanded by 3% as the price of socks declined by 7% D. Market for flat screen TVs has a decline in quantity demanded by 10% and the price of DVRs rose by 10%

Answer 1

Hus. Q = 400-lop as = -200 top - A At equilibrium, - 400-10P = - 200+20 L = p = $20 I and Q = ds = Q = 200 units Price A Equilibrium B a 200 Quantity An increase in the price of laber will read its a leftward shift of supply curve as shown in the figure above from sto Ist. This will lead to jucerare in equilibrium price to P' and decrease un equilibrium quantity to a

A Elasticity = LA in quantity 7. Ainprice. - 45.1. = -3.214 as Elasticity 17 111, it is highly محتململف - B. Elasticity = 18% -91 = -2.25. -71 as Elasticity > lal, it is elastic dana c. Elasticity = 31 = -0.4285 as Elasticity K 111, it is inelastic deman D. elasticity = -10% = -1 as Elasticity l = 111, it is unitary elastic demand

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