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?
Suppose the demand curve for a product is given by Q = 15 − 1P + 2P(subscriptS) where P is the price of the product and P(subS) is the price of a substitute good. The price of the substitute good is $2.70. Suppose P = $1.00. The price elasticity of demand is _________ (two decimal places) The cross-price elasticity of demand is ____________ (two decimals) Suppose the price of the good, P, goes to $1.60. Now the price elasticity of...
Tax Problem: Suppose the demand curve for a good is given by Q D = 10 - 2P and the supply curve is given by Q S = -2 + P. a) (4 points) Find the equilibrium price and quantity in the absence of any government intervention. b) (6 points) Now suppose the government imposes a tax of t = 3. Find the new equilibrium price at which the good is sold in the market and the quantity of the...
1. Let demand be P(Q) = 6 - 2. What is the price elasticity of demand at Q = 4? a. E = C. b. E= E = -4 d. E= -2 2. Suppose we have 3 types of households each with private demand for a public good (like flood protection) of P1(Q) = 5, P2(Q) = 10 - Q, and P3(Q) = 20 – 2Q. What is the social demand curve for the range Q < 10? a. Ps(0=...
The following questions are based upon the firm demand curve for a food given by: Q = 12-4P+2Px+8INC Where Q is the quantity demanded, P is the price of the good, Px is the price of another good, and INCis income. 1. (1 pt.) If P=10, Px=10 and INC=20, what is the price elasticity of demand, Ep? 2. (1 pt.) At P=10, this firm is pricing on the elastic/inelastic region of its demand curve. 3. (1 pt.) At P=10, the...
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. Let demand be P(Q) = 6 ---Q. What is the price elasticity of demand at Q = 4? 1 a. E = — 4 1 C. b. E =- 2 E = -4 d. E = -2 2. Suppose we have 3 types of households each with private demand for a public good (like flood protection) of P (Q) = 5, P2(Q) = 10 - Q, and P3(Q) = 20 – 2Q. What is the social demand curve for...
1. Let demand be P(Q) = 6-Q. What is the price elasticity of demand at Q = 4? a. E = - b. E= - 2 C. E = -4 d. ε = -2 2. Suppose we have 3 types of households each with private demand for a public good (like flood protection) of P1(Q) = 5, P2(Q) = 10 - Q, and P3(Q) = 20 – 2Q. What is the social demand curve for the range Q < 10?...
Suppose my demand for a good is given by P = 6 – 2 * Q and your demand is given by P = 3 - 0.5 * Q. a. Plot your demand curve and my demand curve on the same graph. b. Use horizontal summation to derive a formula for our aggregate demand curve. c. Add the aggregate demand curve to your graph from part a.
The demand curve for an industry's product is given by the equation Q。 32-2P (P is measured in S) At what price will the elasticity of demand be equal to 1 in absolute value? (a) $6 (b) $7 (c) $8 (d) $9