Consider a market that can be represented by a linear demand curve, QD = 200 – 2PD, (where QD is the quantity demanded and PD is the price that demanders pay) and a linear supply curve that QS 2 PS (where QS is the quantity supplied and PS is the price that suppliers get). a. What is the equilibrium price?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Consider a market that can be represented by a
linear demand curve, QD = 200 – 2PD, (where QD
is the quantity demanded and PD is the price that
demanders pay) and a linear supply curve that QS
= ½ PS (where QS is the quantity supplied and PS
is the price that suppliers get).
a. What is the equilibrium price?
b. What is the equilibrium quantity?
c. What is demand elasticity at the equilibrium
point?
Transcribed Image Text:Consider a market that can be represented by a linear demand curve, QD = 200 – 2PD, (where QD is the quantity demanded and PD is the price that demanders pay) and a linear supply curve that QS = ½ PS (where QS is the quantity supplied and PS is the price that suppliers get). a. What is the equilibrium price? b. What is the equilibrium quantity? c. What is demand elasticity at the equilibrium point?
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