In a particular market, demand and supply curves are defined by the following equations: QD = 300 20P, Qs -540 + 40P, = where P is the price per unit in pounds. a) At the equilibrium point, what is the elasticity of demand? b) If the price is £12, what is the elasticity of demand?

In a particular market, demand and supply curves are defined by the following equations: QD = 300 20P, Qs -540 + 40P, = where P is the price per unit in pounds. a) At the equilibrium point, what is the elasticity of demand? b) If the price is £12, what is the elasticity of demand?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In a particular market, demand and supply curves are defined by the following
equations:
QD = 300 20P,
Qs -540 + 40P,
=
where P is the price per unit in pounds.
a) At the equilibrium point, what is the elasticity of demand?
b) If the price is £12, what is the elasticity of demand?

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