Chapter6: Elasticities
Section: Chapter Questions
Problem 1P
Related questions
Question
![I. Given:
Qd = 1100 -
(2) P
Qs = 3P -
100
1.
Equilibrium Price of good x
2.
Equilibrium Quantity of good x
3.
Price Elasticity of demand at Pe
4.
Arc Elasticity where P = 250 and P = 200
Suppose the gov. set a price floor at $200.
5.
There would be a shortage, surplus, or no effect.
6.
If a shortage or surplus, give the amount.
Suppose the gov. set a price ceiling at $200.
7.
There would be a shortage, surplus, or no effect.
8.
If a shortage or surplus, give the amount.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2696974f-4b62-496e-a45a-30e6126a3798%2F4abac6d6-d120-43bb-ad85-ea9821b9f18e%2F93yaxzj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:I. Given:
Qd = 1100 -
(2) P
Qs = 3P -
100
1.
Equilibrium Price of good x
2.
Equilibrium Quantity of good x
3.
Price Elasticity of demand at Pe
4.
Arc Elasticity where P = 250 and P = 200
Suppose the gov. set a price floor at $200.
5.
There would be a shortage, surplus, or no effect.
6.
If a shortage or surplus, give the amount.
Suppose the gov. set a price ceiling at $200.
7.
There would be a shortage, surplus, or no effect.
8.
If a shortage or surplus, give the amount.
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