suppose the demand curve P=75-4*Q.
What price elasticity of demand when the price is $25?
Answer
converting the demand to normal form
P=75-4Q
4Q=75-P
Q=18.75-0.25P
P=25
Q=18.75-0.25*18=18.75-6.25=12.5
dQ/dP=-0.25 .......... by the first differentiation of the demand curve
E=elastcity =(dQ/dP)* (P/Q)
=-0.25*(25/12.5)
=-0.5
the elastcity is -0.5
suppose the demand curve P=75-4*Q. What price elasticity of demand when the price is $25?
Suppose that the demand curve is P = 75 - 4.0 What is the price elasticity of demand when the price is $25?
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=...
Suppose a monopolist faces the constant price elasticity demand curve: p = Q? where ? < 0. The monopolist has a constant marginal cost of c. a. If ? < -1, can you determine what price and quantity will the monopolist set? Explain. b. If 0>?>-1, what is the price and quantity the monopolist will set?
4. (6 points) Suppose the Demand for baseballs is given by Q = 120 – 4P. a) What is the price elasticity of demand when P= 10? b) At what price will Total Revenue be maximized? c) What is the firm's Marginal Revenue when the price is $12?
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?...
Consider the linear demand curve Q = 360 - 6P
What is the price elasticity of demand at P=40?
In what direction and at what rate should the price be changed,
in order to maximize total revenue?
Consider the linear demand curve Q 360-6P 1. a) b) What is the price elasticity of demand at P-40? In what direction and at what rate should the price be changed, in order to maximize total revenue?
4. (6 points) Suppose the Demand for baseballs is given by Q = 120 - 4P. a) What is the price elasticity of demand when P= 10? b) At what price will Total Revenue be maximized? c) What is the firm's Marginal Revenue when the price is $12?
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?
34. The equation for a demand curve is P = 2/Q. What is the elasticity of demand as price falls from 5 to 4? What is the elasticity of demand as the price falls from 9 to 8? Would you expect these answers to be the same? REVIEW QUESTIONS 1x. Compare and contrast the four market structures: Perfect competition, Monopoly, Monopolistic competition, and Oligopoly