demand curve: QD=50-3P supply curve: QS=35+2P a)what is the equilibrium price and quantity? b) What is...

demand curve: QD=50-3P

supply curve: QS=35+2P

a)what is the equilibrium price and quantity?

b) What is the price elasticity of supply at equilibrium? Is the price elasticity of supply elastic, inelastic or unit elastic? explain

c) what is the price elasticity of demand at equilibrium Is the price elasticity of supply elastic, inelastic or unit elastic? explain

d)If a 20 percent increase in income leads to a 5 percent decrease in the demand for a good, the income elasticity of demand equals ________ and the good is ________ good.

e)If a 5 percent increase in the price of good X leads to a 15 percent increase in the demand for good Y, and other things remain the same, the cross elasticity of demand equals ________and goods X and Y substitutes or complements?

Expert Solution

Rahul Sunny answered 2 years ago

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