Describe monthly demand and supply relations of firm

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Reference no: EM131195164

The following equations describe monthly demand and supply relations of a firm

Q^d = 500 – 5 P

Q^s = - 100 + 2 P

1- At what price level would demand equal zero?

2- At what price level would supply equal zero?

3- Determine the market clearing price and output level and graphically show it.

4- Find elasticity of demand and comment whether it is elastic or inelastic.

5- Find elasticity of supply and comment whether it is elastic or inelastic.

6- If firm want to increase its sale by 100,000, what price will it charge?

7- If firm increases its price by AED 1, what will be the equilibrium output?

Reference no: EM131195164

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