8. Suppose that Grandy has a demand function q = 10 - 2p 1) What is...
A demand function given by: Q = 300 ‒ 2P. What is the price elasticity of demand when the price is P = $30? You will have to use the point elasticity formula. The price elasticity of demand at this price is ___________
b. Equilibrium: 1) If market demand function is Q = 4−2p, and market supply function is Q = 2p, what is the equilibrium price, what is the equilibrium quantity? 2) If the market supply is Q = p, the market demand is Q = 3 − bp, and the equilibrium quantity is 2, what is the value of b?
The demand function of a good is Q = 100 – 2p. What is the elasticity at the point p=10 and Q=800?
suppose the demand curve for a product is given by Q=10-2P+Ps1,where P is the price of the product and Ps is the price of a substitute good. the price of the substitute good is $2.00.a)suppose P=$1.00, what is the price elasticity of demand?what is the cross- price elasticity of demand?b)suppose the price of the good, P, increases to $2.00. Now what is the price elasticity of demand, and what is the cross-prices elasticity of demand?
Problem 1: Suppose that the market demand function is given by q-80-2p. All firms in the industry have marginal cost of 10 and no fixed cost. In this problem, the firms compete in quantities. (a) What is the equilibrium price, quantity, consumer surplus, profit (producer surplus) and deadweight loss if there is only one firm in the industry? (b) Now answer the same question if there are two firms in the industry (duopoly). How does your answer compare to the...
What is the price elasticity of demand when the demand function is Q = 200 – P2 – 6P? Is demand elastic or inelastic when P = 5? 2P+6P Answer. E=3 At P=5, E = 80/145, demand is inelastic. 200 - P2 - 6PA
1. Given the demand function Q = 500 - 3P - 2P, +0.01Y where and P denote quantity and price of the good, Y is income, and price of an alternative good. is the a) If P=20, PA = 30, and Y= 5000, find (i) the price elasticity of demand (ii) the cross-price elasticity of demand (iii) the income elasticity of demand b) If income rises by 5%, calculate the corresponding percentage change in demand, Is the good inferior or...
Consider a market described by the linear demand curve q = 8 − 2p. (e) Compute the price elasticity of demand at the prices p = 3, p = 2, and p = 1. At which of these prices is demand elastic / inelastic / unit-elastic?
Problem Set 1 Due Date: Wednesday, January 25,2017 1. Consider the following demand function of an individual for good 1: where p" p2, ps are the prices of good 12, and 3, respectively, and Y represents the income the individual. Suppose good 1 and 2 are substitutes while good 1 and 3 are complements. (a) Describe in words what B,,B,, B, and B, measure. (b) Can you say anything about the expected signs of p.B.B, and B, in the demand...
The demand function of canned soda is linear Q=2000-500p, where Q is quantity in cans and p is price/can in dollars. 1) when p=1.5, what is the elasticity of demand? 2) what is the price at which the demand for soda has unitary elasticity? 3) suppose after the anti-sugar campaign, the demand function of soda becomes Q=2500-500p^2. at the price, you identified in (b), what is the elasticity of demand now given the new demand function? is it elastic or...