Consider the market for wireless headphones using the equations below. P = 120- QD P = 40+ 3QS 1. What is the equilibrium price and quantity in this market? 2. If the quantity demanded changes from 20 to 30, Calculate the Price elasticity of demand. Is this elastic, inelastic or unit elastic?
Consider the market for wireless headphones using the equations below. P = 120- QD P = 40+ 3QS 1. What is the equilibrium price and quantity in this market? 2. If the quantity demanded changes from 20 to 30, Calculate the Price elasticity of demand. Is this elastic, inelastic or unit elastic?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![**Market Analysis for Wireless Headphones**
Consider the market for wireless headphones using the equations below.
Demand Equation:
\[ P = 120 - Q^D \]
Supply Equation:
\[ P = 40 + 3Q^S \]
**Questions:**
1. **What is the equilibrium price and quantity in this market?**
2. **If the quantity demanded changes from 20 to 30, calculate the price elasticity of demand. Is this elastic, inelastic, or unit elastic?**
3. **If consumer income increased and this is a normal good, what will happen to the equilibrium price and quantity? (Explain generally without specific numbers).**](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F59aee2bb-f991-4260-9a22-993f209d765c%2Fca7bfed1-3a17-4d81-9abe-2cf95f4485cd%2Floulq3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Market Analysis for Wireless Headphones**
Consider the market for wireless headphones using the equations below.
Demand Equation:
\[ P = 120 - Q^D \]
Supply Equation:
\[ P = 40 + 3Q^S \]
**Questions:**
1. **What is the equilibrium price and quantity in this market?**
2. **If the quantity demanded changes from 20 to 30, calculate the price elasticity of demand. Is this elastic, inelastic, or unit elastic?**
3. **If consumer income increased and this is a normal good, what will happen to the equilibrium price and quantity? (Explain generally without specific numbers).**
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