Q5) Suppose the market demand for playing cards is given by the equation Q = 600 – 100P Where Q is the no. of decks of cards demand each year and P is the price in Rupee. For a price increase from Rs. 2 to Rs. 3 per deck, what is the price elasticity?

Managerial Economics: A Problem Solving Approach
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Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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Subject: Business Economics

Q5) Suppose the market demand for playing cards is given by the equation

Q = 600 – 100P

Where Q is the no. of decks of cards demand each year and P is the price in Rupee. For a price increase from Rs. 2 to Rs. 3 per deck, what is the price elasticity?

Q6) The wage rate of labor is Rs. 6 and price of capital is Rs. 2. The marginal product of labor is 16 while marginal product of capital is 4. Can a firm be operating at equilibrium?           

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