Calculate arc price elasticity of demand between price

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Assume that the current demand and supply curves for widgets can be expressed as:

Qd = 200 – 5P and Qs = 50 +10P , respectively, where P denotes the per unit price of widgets in dollars, Qd is the quantity demanded of widgets in cases per week and Qs is the quantity supplied of widgets in cases per week.

a. the equilibrium quantity is 150 cases per week

b. the equilibrium price is $15

c. at a price of $12 a shortage would occur

d. all of the above

e. none of the above

calculate point price elasticity of demand at a price of 10 dollars.

calculate arc price elasticity of demand between a price of $6 and $12.

Reference no: EM131244535

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