a. Base on the demand and supply functions above, from equilibrium price and quantity, if the price changes to P3.00, what is the value of its price elasticity of demand? , -.) b. Referring to the given functions, from equilibrium price and quantity, what is the value of its price elasticity of supply if the price changes to P6.00?

a. Base on the demand and supply functions above, from equilibrium price and quantity, if the price changes to P3.00, what is the value of its price elasticity of demand? , -.) b. Referring to the given functions, from equilibrium price and quantity, what is the value of its price elasticity of supply if the price changes to P6.00?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. Consider the following functions for Good X (pieces)
per week:
Demand Function:
Qd = 60 – 2P
Supply Function: Qs = 40 + 3P.
%3D
%3D
where: Equilibrium Price = P4.00
Equilibrium Quantity =52 pieces
%3D
a. Base on the demand and supply functions
above, from equilibrium price and quantity, if the
price changes to P3.00, what is the value of its
price elasticity of demand? ,-.)
b. Referring to the given functions, from equilibrium
price and quantity, what is the value of its price
elasticity of supply if the price changes to P6.00?
5.)

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