A person's demand is given by the following equation: log(Q)=40-10log(P). What is the elasticity of demand...

A person's demand is given by the following equation: log(Q)=40-10log(P). What is the elasticity of demand when P=100?

Expert Solution

Rahul Sunny answered 2 years ago

The demand function for a certain item is Q=p^5e^(−(p+7)) Remember elasticity is given by the equation...

The demand function for a certain item is Q=p^5e^(−(p+7)) Remember elasticity is given by the equation E=−(dQ)/(dp)(p/Q). Find E as a function of p. E=

Given the demand equation and MC in problem # 1 (demand equation: Q = 40 –...

Given the demand equation and MC in problem # 1 (demand equation: Q = 40 – 0.5P. Marginal cost is MC = $20.), suppose the firm decides to offer quantity discount by selling the product in bundles of 10 units. Answer the following questions. A graph would help you with this question, but you do not need to include the graph in your answer. a. What is the maximum price that the firm can charge for the first 10 units,...

if the demand curve is Q(p)=p*, what is the elasticity of demand? if marginal cost is...

if the demand curve is Q(p)=p*, what is the elasticity of demand? if marginal cost is 1$ and *= -2, what is the profit maximizing price?

The demand equation for a market is given by p(q + 3) = 15 and, for...

The demand equation for a market is given by p(q + 3) = 15 and, for some constant α, the supply equation is q = αp − 1 where p is the price and q is the quantity. Given that the equilibrium price for this market is three, determine the equilibrium quantity and the value of α. Find the consumer and producer surpluses?

Consider a market where inverse demand is given by P = 40 − Q, where Q...

Consider a market where inverse demand is given by P = 40 − Q, where Q is the total quantity produced. This market is served by two firms, F1 and F2, who each produce a homogeneous good at constant marginal cost c = $4. You are asked to analyze how market outcomes vary with industry conduct: that is, the way in which firms in the industry compete (or don’t). First assume that F1 and F2 engage in Bertrand competition. 1....

If the demand curve is Q(p)=pa (where a<0), what is the elasticity of demand? If the...

If the demand curve is Q(p)=pa (where a<0), what is the elasticity of demand? If the marginal cost is $1, and a=-3, what is the profit-maximizing price?

Suppose the domestic demand for coffee is given by the equation Q = 100 - P,...

Suppose the domestic demand for coffee is given by the equation Q = 100 - P, domestic supply by the equation Q = P. The world price for coffee is $20 per unit. The government decides to impose an import quota limiting imports to 10 units. How much deadweight loss will this generate? Please explain clearly using graphs.

Find the Elasticity of Demand and Explain your answer, for the following function: P+5(p^2)q=1010 Given...

Find the Elasticity of Demand and Explain your answer, for the following function: P+5(p^2)q=1010 Given p=10

4. Consider the model for demand for housing: Log Q = β0 + β1 log P...

4. Consider the model for demand for housing: Log Q = β0 + β1 log P + β2 log Y + u Where Q = measure of quantity of housing consumed by each of 3, 120 families per year P = price of unit of housing in family's locality Y = measure of family income The estimated model, (with standard errors in parentheses) is: Log Q = 4.17 - 0.247 log P + 0.96 log Y R2 = .371 (0.11)...

The consumer demand equation for tissues is given by q = (100 − p)2, where p...

The consumer demand equation for tissues is given by q = (100 − p)2, where p is the price per case of tissues and q is the demand in weekly sales. (a) Determine the price elasticity of demand E when the price is set at $34. (Round your answer to three decimal places.) E = Interpret your answer. The demand is going ? up down by % per 1% increase in price at that price level. (b) At what price should tissues...

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