Supply: -35 + 35P Demand: 205 -25P Where P is the price of good = {1,2,3,4,5,6,7,8} a. Plot and determine the equilibrium price. b. Find the point and arc elasticities of demand when prices are increasing c. Find the point and arc elasticities of demand when prices are falling d. Discuss your results

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 34P: The equation for a demand curve is P=2/Q. What is the elasticity of demand as price falls from 5 to...
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Supply: -35 + 35P Demand: 205 -25P Where P is the price of good = {1,2,3,4,5,6,7,8} a. Plot and determine the equilibrium price. b. Find the point and arc elasticities of demand when prices are increasing c. Find the point and arc elasticities of demand when prices are falling d. Discuss your results
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