Answer in Microeconomics for Saadfarooq #109994
April 21st, 2023
With given supply and demand curve the equilibrium price and quantity are P=20. Q=60.
Point elasticity formula:
“E = frac{dQ}{dP}timesfrac{P}{Q}.”
So, “Ed = -2timesfrac{20}{60}.”
“Es = 3timesfrac{20}{60}=1.”
The price elasticity of demand is -2/3, the price elasticity of supply is 1.
Demand curve “Q=100-2P” , so if the price is P=20, than the demand is “Q(30) = 100-2times30=40.”
If the price is 50, that the demand is “Q(50) = 100-2times50=0.”
