The Demand curve for a good A is P = - 2Q+200 and the Supply curve is P=Q+10. A. Find the equilibrium Price and Quantity B. What is the level of total expenditure in this market? C. What is the price elasticity of demand at equilibrium?
The Demand curve for a good A is P = - 2Q+200 and the Supply curve is P=Q+10. A. Find the equilibrium Price and Quantity B. What is the level of total expenditure in this market? C. What is the price elasticity of demand at equilibrium?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 2SQP
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The Demand curve for a good A is P = - 2Q+200 and the Supply curve is P=Q+10.
A. Find the
B. What is the level of total expenditure in this market?
C. What is the price
D. If there is a law that prevents you from consuming this good, how much
should you be compensated by the government to accept it given the
Demand shifts to P = - 2Q+260 due to an increase in the price of another good B from
$20 to $25
E. Find the New Equilibrium, and Calculate the new Consumer Surplus and the
Cross Price Elasticity of Demand. What type of goods are these?
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