Qd : 50-p Qs :-10+p Calculate the price elasticity of demand at the equilibrium price? Also,...

Qd : 50-p

Qs :-10+p

Calculate the price elasticity of demand at the equilibrium price? Also, calculate the price elasticity of
supply at the equilibrium price? Explain your result for both.

Expert Solution

See images for answers

if you have any doubt ask in comment i will reply asap.

If you like the answer give thumbs up

Thank you ?

Rahul Sunny answered 2 years ago

Suppose demand and supply are given by Qd = 50 - P and Qs = 1.0P -...

Suppose demand and supply are given by Qd = 50 - P and Qs = 1.0P - 20. a. What are the equilibrium quantity and price in this market? Equilibrium quantity: ______________ Equilibrium price: $ ___________________ b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $44 is imposed in this market. Quantity demanded: ______________ Quantity supplied: ______________ Surplus: ________________ c. Determine the quantity demanded, the quantity supplied, and the magnitude of...

Qd = 72 − 12P Qs = -18 + 6P 1) If price elasticity of demand...

Qd = 72 − 12P Qs = -18 + 6P 1) If price elasticity of demand for avocado at price P* is equal to -6/9, how much is P*? a) $2.00 b) $2.20 c) $2.40 d) $2.60 e) $2.80 2) What is quantity demanded at price P* at which price elasticity of demand for avocado equals -6/9? a) 42.2 tons b) 43.2 tons c) 44.2 tons d) 45.2 tons e) 46.2 tons 3) If price elasticity of supply for avocado...

QUESTION 6 Assume Qd=10-2P and Qs=P. What is the elasticity of SUPPLY if price increases from...

QUESTION 6 Assume Qd=10-2P and Qs=P. What is the elasticity of SUPPLY if price increases from $1 to $3? a.Inelastic b.Not enough information is available to answer this question. c.Elastic d.Unit elastic 10 points QUESTION 7 Assume Qd=10-2P and Qs=P. If a tax of $1 is imposed by the government, who will pay the larger burden of the tax. a.Buyers b.Buyers and sellers will pay equal shares of the tax. c.Not enough information is in the question to say...

Market demand is QD= 50-P and the market supply is QS=P. The government imposes a percentage...

Market demand is QD= 50-P and the market supply is QS=P. The government imposes a percentage tax of 30%. What is the new equilibrium price and quantity? Select one: a. P*=25; Q*=25 b. P*=20; Q*=30 c. P*=30; Q*=20 d. P*=30; Q*=30 e. None of the above

Demand: Qd=90-4P, where Qd is quantity demanded and P is price Supply: Qs=-100+15P, where Qs is...

Demand: Qd=90-4P, where Qd is quantity demanded and P is price Supply: Qs=-100+15P, where Qs is quantity supplied and P is price Recall that equilibrium price was 19, while quantity was 50. At that price, the price elasticity of demand was -0.80. Now I want you to rearrange each equation, putting P on the left-hand side, and solve again for equilibrium P and Q (you ought to get the same answer). Now we want to figure the monopoly price. Take...

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...

Suppose the inverse demand for gasoline is given by p=10-QD/2. a. Find the equilibrium price and...

Suppose the inverse demand for gasoline is given by p=10-QD/2. a. Find the equilibrium price and quantity assuming supply is perfectly elastic and given by MC=3. In the U.S., gasoline is taxed on a per gallon basis, and the tax is paid by suppliers. Suppose the tax is $0.5 per gallon of gasoline. b. After the tax is imposed, what is the new equilibrium price and quantity? How much revenue is raised by the tax? c. What is the tax...

2. Supply, Demand and Elasticity: The demand for a product is Qd=200-5P-2Px and supply is Qs=10+2P,...

2. Supply, Demand and Elasticity: The demand for a product is Qd=200-5P-2Px and supply is Qs=10+2P, where Q is the quantity of the product, in thousands of units, P is the price of the product, and Px is the price of another good X. A. When Px = $25, what is the equilibrium price and quantity sold of the product? B. At the equilibrium price and quantity, what is the own price elasticity of demand for the product? C. What...

I. Given: Qd = 1100 - (2)P Qs = 3P - 100 1. Equilibrium Price of...

I. Given: Qd = 1100 - (2)P Qs = 3P - 100 1. Equilibrium Price of good x 2. Equilibrium Quantity of good x 3. Price Elasticity of demand at Pe 4. Arc Elasticity where P = 250 and P = 200

The demand and supply equations for a product are given by QD = 20-P QS = -10 +2P

The demand and supply equations for a product are given by QD = 20-P QS = -10 +2P 1. Calculate the equilibrium price and quantity. 2. Calculate the price elasticity of demand and the price elasticity of supply at the above equilibrium point. 3. An excise tax of $1 per unit is imposed on the producers of the product. Calculate the new equilibrium price and quantity. Calculate the consumer and producer tax burden ( as a percentage of...

Question