Demand: P 160 - 0.02 Q Supply: P= 60 + 0.03 Q Given the following: a) Find the initial equilibrium. b) assume there is a 50% increase in supply (i.e. if you had n firms, you now have 1.5 times n firms). Find the new equilibrium. For what (Q.P) is the elasticity of demand equal to -2?
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- (1) Given the following demand function: Q=15.6-0.5 p (a) Graph the demand curve. (b) Calculate for price elasticity of demand at p*= 7 and Q* = 12. (c) Explain intuitively your answer in (a).A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) = 898-15x, where q is the quantity of cookies sold when the price per cookie, in cents, is x. Use this infor a) Find the elasticity b) At what price is the elasticity of demand equal to 1 ?The demand function of a certain commodity is X = 30 2P. When the price P changes from 5 to 10, please calculate the price elasticity of demand e. (a) 0.1 (b) 0.2 (c) 0.3 (d ) 0.4 (e) 0.5 (f) 2
- Suppose that the price per unit p as a function of the demanda is p = 478.8 -0.9x. (a) Calculate the price elasticity of demand when x = 132. n = -2.44, therefore the demand is elastic (b) Calculate the price elasticity of demand when x = 425. n = -0.202 therefore the demand is inelastic (c) Find the demand that gives unit elasticity. x = 266.0 ✓A firm estimated a demand function for their mugs:Dm = 1.25Y- 0.8Pm + 0.5Dc – 0.1PcWhere D stands for demand, Y is income growth, P is the price, m is mugs, and c is coffee. (a) What is the price and income elasticity of demand estimates for mugs? (b) How do we estimate the cross price elasticity between coffee mugs and coffee? Are they complementary goods or substitute goods?K Currently, 1600 people ride a certain commuter train each day and pay $16 for a ticket. The number of people q willing to ride the train at price p is q=400 (8-√p). The railroad would like to increase its revenue. (a) Is demand elastic or inelastic at p=16? (b) Should the price of a ticket be raised or lowered? (a) Choose the elasticity of the demand below. Oneither O elastic inelastic (b) What should the railroad do to increase revenue? O The price should be raised. O The price should be lowered.
- i. ii. iii. Suppose the demand function for a product is given by (3000-9 where p is in hundreds of RM and q is the number of tons. Determine the point elasticity of demand when the quantity demanded is 6 tons. is demand elastic, is it inelastic, or does it have unit elasticity at this point? Approximate the percentage change in price if the demand of 6 tons is decreased by 3%.2. Suppose the demand for a product is given by x = 30 − 2p. (a) Find the elasticity of demand and use that to find the price that maximizes revenue. (b) Now, let’s do the same thing a different way. Find the revenue functions in terms of the variable p. This will be a quadratic function. Find the p value of the maximum by finding the vertex of the parabola. (You should get the same p value as in part (a).In Problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function pq = 81 at p = 3.
- The demand for tickets to an oromia gada films given by D(p)=200000-10000p,where p is the price of thickets if price of thickets is12birr calculate price elasticity of demand for tickets and draw the demand of curveIf the Demand for a good in linear in its price, then ... the elasticity of Demand is larger (in absolute value) for low prices the elasticity of Demand is larger (in absolute value) for high prices. the elasticity of Demand is the same along the Demand function irrespective of the price. This is what "linear in price" means.4x + 500 10x +9 the number of plants sold per day when the price is x dollars per plant. A garden shop determines the demand function q = D(x) = (a) Find the elasticity. (b) Find the elasticity when x=3. (c) At $3 per plant, will a small increase in price cause the total revenue to increase or decrease? (a) The elasticity is during early summer for tomato plants where q is M Ir