Given the Demand function, Q = 360 – 2P. First, interpret the constants in the function....

Given the Demand function, Q = 360 – 2P.

First, interpret the constants in the function.
Derive the elasticity when the price is US$ 50 and interpret the result.
Next, derive the Inverse Demand Function and interpret the constants in the function.
Take the 1^st and 2^nd derivative of the Inverse Demand function and interpret your results.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

given the demand function, Q=20-2p, find the price range for which a) demand is elastic b)...

given the demand function, Q=20-2p, find the price range for which a) demand is elastic b) demand is inelastic c) demand is unit elastic d) if the firm increases the price to £7, is the total revenue increasing or reducing?

A monopolist faces the demand function Q = 20 – 2P. Its cost function is TC(Q)...

A monopolist faces the demand function Q = 20 – 2P. Its cost function is TC(Q) =0.5Q. Solve for the monopolist’s profit-maximizing price and output and calculate its profit as well as the consumer surplus and deadweight loss.

2) A consumer’s demand function is Q = 60 – 2P. a) Determine the inverse demand...

2) A consumer’s demand function is Q = 60 – 2P. a) Determine the inverse demand function. b) Determine the inverse demand function’s vertical intercept. c) Determine the inverse demand function’s horizontal intercept. d) Determine the inverse demand function’s slope. e) Determine the consumer’s marginal benefit for the 20th unit demanded. f) Determine the consumer’s total benefit from purchasing 60 units. g) Determine the market demand function if there are 10 consumers with the demand function Q = 60 –...

Ally's demand function for ice cream cones is q=5-p, and Ben demand function is q=6-2p. Assume...

Ally's demand function for ice cream cones is q=5-p, and Ben demand function is q=6-2p. Assume Ally and Ben are the only consumers in the market. a) what is the aggregate demand of both ally and ben b)suppose the market is perfectly competitive and the supply function is q=.5p-1. what is the equilibrium price and quantity? c) suppose it is a monopoly market instead and the marginal cost of the monopolist is 2q+2. what is the optimal price the monopolist...

The market demand function for corn is Q(d) = 30- 2P and the market supply function...

The market demand function for corn is Q(d) = 30- 2P and the market supply function is Q(s)= 5P - 2.5, both measured in billions of bushels per year. Suppose the import supply curve is infinitely elastic at a price of $3.50 per bushel. a. Calculate consumer surplus, producer surplus, and aggregate surplus. b. Whatwouldbethewelfareeffectsofatariffof$1.00perbushel?

The demand for ice cream is given by Q D = 20 – 2P, measured in...

The demand for ice cream is given by Q D = 20 – 2P, measured in gallons of ice cream. The supply of ice cream is given by Q S = 4P – 10. Suppose that the government legislates a $1 tax on a gallon of ice cream, to be collected from the seller. a) As a result of the tax, what is the price paid by buyers? b) What is the price received by sellers? Hint: You need to...

2. Given a firm's demand function Q-90+2P=0 and its average cost function AC= Q2-39.5Q+120+(125/Q) find the...

2. Given a firm's demand function Q-90+2P=0 and its average cost function AC= Q2-39.5Q+120+(125/Q) find the level of output (Q) which a) Maximizes Total Revenue b) Minimizes Marginal Cost c) Maximizes Profits. 3. A monopolistic firm has the following demand functions for each of its products X and Y: X=72-0.5Px Y=120-Py The combined cost function is C=X2+XY+Y+35. The maximum production capacity is 40 and given by X+Y=40. Find the profit maximizing levels of output, prices and profit.

suppose the market demand function for ice cream is Q^d = 10 - 2P and the...

suppose the market demand function for ice cream is Q^d = 10 - 2P and the market supply function for ice cream is Q^5 = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream produced. The price received by sellers with the tax is? a. 2.33 b. 1.50 c. 1.73 d. 1.83

1. You are given the following demand equations: Q 450 16P Q 360 80P Q 1,500...

1. You are given the following demand equations: Q 450 16P Q 360 80P Q 1,500 500P a. Determine each equation’s total revenue and marginal revenue equations. b. Plot the demand equation and the marginal and total revenue equations on a graph. c. Use calculus to determine the prices and quantities that maximize the revenue foreach equation. Show the points of revenue maximization on the graphs that you have constructed. 2. You are given the following cost equations: TC 1,500...

The demand and supply function are given by 2P + 3QD = 66 5P – 2QS...

The demand and supply function are given by 2P + 3QD = 66 5P – 2QS = 13 Find the equilibrium price and quantity using inverse matrix method.

Subjects