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1. Demand for a good is given by P=72.6-0.25Q. Supply is given by P=13.2+0.27Q. Find the equilibrium quantity (Q)
2. Demand for a good is given by P=22.91-0.66Q. The Supply curve is given by P=9.78+0.13Q. Find the equilibrium quantity (Q)
3. Suppose the price of airfare from OAK to DEN increases from $260 to $300 While no other variables change. In consequence, the quantity of tickets sold decreases from 215 to 185. Calculate the absolute value of the price elasticity of demand. (HINT: use the average of the two prices for P and the average of the two quantities for Q.)
4. Suppose the price of airfare from OAK to DEN increases from $290 to $310 While no other variables change. In consequence, the quantity of tickets sold decreases from 190 to 130. Calculate the absolute value of the price elasticity of demand. (HINT: use the average of the two prices for P and the average of the two quantities for Q.)
A certain type of computer costs $800, and the annual holding cost is 20%. Annual demand is 9,000 units, and the order cost is$200 per order. What is the approximate economic order quantity?
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