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The equation for the original demand curve is Q=50-6.25P. Find the new demand equation when demand increases by 20% (Round to one decimal place). Q=___ - ___P

The supply curve for the product is Q=-10+12.5P. Find the original equilibrium price and quantity using the above demand curve. P =___ and Q=___.

Find the new equilibrium price and quantity after demand increases 20%. P= ___ Q=___ (Round to 2 decimal places) .

Calculate the price elasticity of demand and the price elasticity of supply at the new equilibrium (ie, use demand curve. Price elansiticy of demand is _____. Price elasticity of supply is _____.

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Retselisitsoe Pokothoane
Retselisitsoe PokothoaneLv10
28 Sep 2019

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Related questions

Assume that the demand for iron (the primary component of steel) is Q = P^(-a)? , where the exogenous parameter a>0 takes some fixed value. For all parts assume that the iron market is in equilibrium. You should simplify your answers as much as possible.

(a) Find the inverse demand curve for iron.

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(c) What is the elasticity of demand for iron, as a function of Q and the parameter a? For parts (d)-(f) assume that a=2 and the supply of iron is Q = 8P.

(d) What are the equilibrium price and quantity of iron? If the value of a is unknown, then what are the equilibrium price and quantity as functions of a?

(e) Draw a picture that shows the supply and demand curves (including two exact points on each curve) and the equilibrium.

(f) Suppose that? increases from its initial value of a=2. Does this represent an increase or decrease in demand; supply; quantity supplied; and quantity demanded?

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