Q3 The relations describing demand and supply for a hairdresser's service can be showed as the following equations: QD=540-16P Qs=-300+12P Where Q is the number of customers that need hair services and P is the service fee, in dollars. a. At what average fee would demand equal zero? b. At what average fee would supply equal zero? ( c. What is the equilibrium price and output level? d. Suppose demand increases and leads to a new demand curve: QD=624-10P What are the new equilibrium price and quantity? ( e. Suppose new suppliers enter the market due to the increase in demand so the new supply curve is Q 160+ 12 P (demand curve : QD-624-10P). What are the new equilibrium price and equilibrium quantity??

Q3 The relations describing demand and supply for a hairdresser's service can be showed as the following equations: QD=540-16P Qs=-300+12P Where Q is the number of customers that need hair services and P is the service fee, in dollars. a. At what average fee would demand equal zero? b. At what average fee would supply equal zero? ( c. What is the equilibrium price and output level? d. Suppose demand increases and leads to a new demand curve: QD=624-10P What are the new equilibrium price and quantity? ( e. Suppose new suppliers enter the market due to the increase in demand so the new supply curve is Q 160+ 12 P (demand curve : QD-624-10P). What are the new equilibrium price and equilibrium quantity??

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Elasticity

Section: Chapter Questions

Problem 11QP: Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price...

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