Question 2* (a). Prove that when the consumer is in equilibrium the marginal utility that is placed on the goods he/she consumes is equal to its price. (b). Explain how the consumer can restore equilibrium if market condition changes. (c). The demand function for a given type of product P=30-2Q find the point Price elasticity of demand when the price is 6 interpret your answer.

Question 2* (a). Prove that when the consumer is in equilibrium the marginal utility that is placed on the goods he/she consumes is equal to its price. (b). Explain how the consumer can restore equilibrium if market condition changes. (c). The demand function for a given type of product P=30-2Q find the point Price elasticity of demand when the price is 6 interpret your answer.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...

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Q5. Demand is said to be elastic if (a) the price of the good responds substantially to changes in demand. (b) demand shifts substantially when income or the expected future price of the good changes. (c) buyers do not respond much to changes in the price of the good. (d) buyers respond substantially to changes in the price of the good. (X) No attempt Ansuor
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