ECON 212 Quiz: ECON 212quizQuiz1A

• School: Queen's University
• Department: Economics
• Course: ECON 212
• Professor: All

Document Summary

Question 1: [4 marks] consider a market for computers. The demand curve in the market is given by the equation qd=21-5p where p is the price of a computer. Supply in the market is described by the supply curve qs=2p: [2 marks] calculate the equilibrium price and quantity in the market, and draw it on a graph. Answer: set qd=qs to get equilibrium price of p=3. Sub p=3 into one of the demand equations to get q=6: [2 marks] calculate the elasticity of demand and the elasticity of supply at the equilibrium price and quantity. Question 2: [6 marks] charles barkley loves eating cake and gumbo, however he only has 24 hours in a day to eat both, of which he must sleep 8 hours. It takes sir charles one hour to eat a cake, but it takes him two hours to eat a pot of gumbo: [2 marks] graph charles budget constraint.