1).The inverse demand and supply function for a commodity are given by p×=-1\4qx+25 and qx=2px-5,respectively (a)determine the equilibrium price and quantity (b)determine the price elasticity of demand at the equilibrium (c)what is the state of the market at the price level PX=4......(2)when price of tea in a local cafe rises from br.10 to 15 per cup,demand for coffee rises from 3000 cups to 5000 cups a day despite no change in coffee prices (A) determine cross elasticity (B)based on the result ,what kind of relation exist between the two goods?....(3)The level of equilibrium price and quantity after a simultaneous upward(rightward) shift in demand and supply depends on the relative magnitude of the changes in demand and supply. Discuss with illustration....(4).Marginal utility and units of a good...unit:1,2,3,4....Good A:60,50,40,30 Good B:36,3018,12 Good C:16,14,10,8 Given (1) The price of commodity A(PA)=birr5,commodity B(PB)=birr3 and commodity C(PC)=1.(2)the total income of the consumer is birr 19 Now ,would the consumer purchase the first unit of A,B or C?Show and describe

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

1).The inverse demand and supply function for a commodity are given by p×=-1\4qx+25 and qx=2px-5,respectively (a)determine the equilibrium price and quantity (b)determine the price elasticity of demand at the equilibrium (c)what is the state of the market at the price level PX=4......(2)when price of tea in a local cafe rises from br.10 to 15 per cup,demand for coffee rises from 3000 cups to 5000 cups a day despite no change in coffee prices (A) determine cross elasticity (B)based on the result ,what kind of relation exist between the two goods?....(3)The level of equilibrium price and quantity after a simultaneous upward(rightward) shift in demand and supply depends on the relative magnitude of the changes in demand and supply. Discuss with illustration....(4).Marginal utility and units of a good...unit:1,2,3,4....Good A:60,50,40,30 Good B:36,3018,12 Good C:16,14,10,8 Given (1) The price of commodity A(PA)=birr5,commodity B(PB)=birr3 and commodity C(PC)=1.(2)the total income of the consumer is birr 19 Now ,would the consumer purchase the first unit of A,B or C?Show and describe

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Elasticity of demand
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education