Suppose the demand function for a given product is q = 5,400 - 2p2, where p...

Suppose the demand function for a given product is q = 5,400 - 2p², where p is the price in dollars.

Find the price interval(s) where demand is elastic:

Find the price interval(s) where demand is inelastic:

show work

Expert Solution

milcah answered 2 years ago

Suppose that consumer (retail) demand for a product is given by: Q=100−P, where Q is the...

Suppose that consumer (retail) demand for a product is given by: Q=100−P, where Q is the quantity demanded and P is the price. The inverse demand curve (which gives the price as a function of the quantity demanded) is: P=100−Q. The marginal cost of production and average total cost of production are $26 per unit, and the marginal cost of distribution and average total cost of distribution are $10 per unit. Suppose the retail distribution is monopolized by another firm....

a. Suppose the demand function P = 10 - Q, and the supply function is: P...

a. Suppose the demand function P = 10 - Q, and the supply function is: P = Q, where P is price and Q is quantity. Calculate the equilibrium price and quantity. b. Suppose government imposes per unit tax of $2 on consumers. The new demand function becomes: P = 8 – Q, while the supply function remains: P = Q. Calculate the new equilibrium price and quantity. c. Based on (b), calculate the consumer surplus, producer surplus, tax revenue,...

Suppose the demand function P = 10 - Q, and the supply function is: P =...

Suppose the demand function P = 10 - Q, and the supply function is: P = Q, where P is price and Q is quantity. Calculate the equilibrium price and quantity. b.Suppose government imposes per unit tax of $2 on consumers. The new demand function becomes: P = 8 – Q, while the supply function remains: P = Q. Calculate the new equilibrium price and quantity. c.Based on (b), calculate the consumer surplus, producer surplus, tax revenue and the deadweight...

The inverse demand function in a market is given by p=32-Q where Q is the aggregate quantity produced.

The inverse demand function in a market is given by p=32-Q where Q is the aggregate quantity produced. The market has 3 identical firms with marginal and average costs of 8. These firms engage in Cournot competition. a) How much output does each firm produce? b) What is the equilibrium price in the market? c) How much profit does each firm make? d) Consider a merger between two firms. Assuming that due to efficiency gains from the merger,...

2. Suppose the demand function for a monopolist’s product is given by P = 300 –...

2. Suppose the demand function for a monopolist’s product is given by P = 300 – 3Q and the cost function is given by C = 1500 + 2Q2 (Kindly answer clearly) A) Calculate the MC. B) Calculate the MR. C) Determine the profit-maximizing price. D) Determine the profit-maximizing quantity. E) How much profit will the monopolist make? F) What is the value of the consumer surplus under monopoly? G) What is the value of the deadweight loss?

Given the demand function Q = 100 - 10P, where P corresponds to price, do...

Given the demand function Q = 100 - 10P, where P corresponds to price, do the following: Plot the respective demand function. Be sure to label your axes. For what price will Q = 0? When P = 0, what is Q? Derive the expression for the own-price elasticity. Is the own-price elasticity constant along all points on the demand curve? What price range insures that the demand for Q is inelastic? Derive the inverse demand function. That is,...

3. Suppose the inverse demand for a monopolist’s product is given by P (Q) = 150...

3. Suppose the inverse demand for a monopolist’s product is given by P (Q) = 150 – 3Q The monopolist can produce output in two plants. The marginal cost of producing in plant 1 is MC1 = 6Q1 While the marginal cost of producing in plant 2 is MC2 = 2Q2 (Kindly answer clearly) a) How much output should be produced in each plant? b) What price should be charged?

suppose the demand curve for product Y is given by P=150+2i-(Q/2), where i is income measured...

suppose the demand curve for product Y is given by P=150+2i-(Q/2), where i is income measured in thousands of dollars, P is price of product Y in $, Q is quantity of product Y. The supply curve is Q=3P+50, if i=25. 1.What is the price elasticity of demand for product Y at the equilibrium? 2.What is the income elasticity of demand for product Y?

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....

the demand is given by p= 140-4Q Where P is the price and Q is the...

the demand is given by p= 140-4Q Where P is the price and Q is the quantity demanded. Find the price at which the own price elasticity is -3. (round to 2 decimals)

Question