Suppose the market demand curve for a product is given by Qd = 500 −50P and the market supply curve is given by Qs = −50 + 25P.         a)At the market equilibrium, what is the price elasticity of demand? Hint: Find and use in place of ( and use equilibrium values of P and Q. Comment on the value of the price elasticity of demand. Suppose the price in this market is $5. What is the amount of excess demand? Suppose demand for good A is given by QDA= 500- 5PA+ 2PB+ 0.80I where PA is the price of good A,PB is the price of some other good B, and I is income. Assume that PA is currently Tk.10 PB is currently Tk.5, and I is currentlyTk.200.         a) What is the income elasticity of demand for good A at the current situation? Hint: Find ∂Q/∂I and use in place of (∆Q/∆I). Comment on the value of the income elasticity.

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25) Which statement is TRUE? Elasticity of demand attempts to measure how fast quantity demanded increases when price increases. The elasticity of demand is always the same as the elasticity of supply. If the elasticity of demand is –4, then economists know that the price is increasing at a faster rate than quantity demanded. The price elasticity of demand is always a negative number, but economists generally ignore the negative sign.   28) To draw a demand curve for commodity X, the only information needed is the total utility received from X. True False   31) Which statement is FALSE? The consumer is assumed to maximize marginal utility. Marginal utility is usually smaller than total utility. Marginal utility generally diminishes as more of a good is consumed. To calculate total utility, sum the marginal utilities of the individual units consumed.

Please answer 1 and 2

Q = a + bP + cM In the demand function above, Q is quantity demanded, P is the price of this good, and M is consumer income. The parameter, b, is the effect on Q of change in P: b ΔQ /ΔΡ Using this relationship for b, find an expression for the price elasticity of demand (E). Select one: O a. E = b(Q/P) O b. E = b(P/Q) %3D O c. E = b(AQ /AP) %3D O d. E = b + (P/Q)

The demand for hamburgers is given by Qd=10-p and the supply is Qs=4p-10, where pd and ps are, respectively the price paid by demanders and the price received by suppliers. A: Draw the demand and supply functions. What is the price-elasticity of demand? What is the price-elasticity of supply? B: Find the equilibrium quantity and price, and show them on the graph. C: Suppose due to the rising health awareness the demand decreases to Q d=5-p. Find the new equilibrium prices and quantity, and show them on the graph.  D: Suppose that the demand and supply are as before, i.e. Qd=10-p and Qs=4p-10, but now the government imposes a quantity tax on the suppler at the rate of 1 per unit of the quantity. What quantity will be sold and what price? E: In part d), what is the total amount of tax collected by the government? How this tax amount is divided between the demanders and supplier? Who pays more and why? Explain

In a particular market, demand and supply curves are defined by the following equations: P=50 – 0.5QD QS= -20 + 2P where, P is the price in pounds, QS is the quantity supplied and QD is the quantity demanded. 1. What is the equilibrium price and quantity? 2. What is the price elasticity at a price of £35? 3. What do you expect will happen to total expenditure on this good if the price increases from £35 to £40? Is this expectation confirmed if you calculate the total revenue for each price?

Suppose that the supply of carrots is qs=1.5P0.5 , while the demand for qd= 200\P carrots is . 1.1a) Find the equilibrium price. 1.1b) Calculate the equilibrium quantity. 1.1c) Calculate the price elasticity of supply ( ) at the equilibrium point.

suppose the demand curve for a product is given by Q=10-2P+Ps1,where P is the price of the product and Ps is the price of a substitute good. the price of the substitute good is $2.00.   a)suppose P=$1.00, what is the price elasticity of demand?what is the cross- price elasticity of demand?   b)suppose the price of the good, P, increases to $2.00. Now what is the price elasticity of demand, and what is the cross-prices elasticity of demand?