b) Given the following demand and supply functions as;    Qd = 500-3p Gs = -100+5p i)Find the price elasticity of demand and price elasticity of supply at the equilibrium point.  ii)Based on the values obtained from Price elasticity of supply in (i) above, what advice would you give to the producer if he is to increase revenue?  iv)Using illustrations, distinguish between Minimum and maximum price   v)Assuming the government, set the price at 45shs, determine whether its minimum or maximum price, and state the surplus or deficit

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
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b) Given the following demand and supply functions as;

 

 Qd = 500-3p

Gs = -100+5p

i)Find the price elasticity of demand and price elasticity of supply at the equilibrium point. 

ii)Based on the values obtained from Price elasticity of supply in (i) above, what advice would you give to the producer if he is to increase revenue? 

iv)Using illustrations, distinguish between Minimum and maximum price  

v)Assuming the government, set the price at 45shs, determine whether its minimum or maximum price, and state the surplus or deficit                             

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