Draw the demand and supply curves

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Question - The demand for hybrid cars in Baltimore is Q = 16 - 4Pd and the supply for the car in Detroit is Q = 4 + 2Ps.

a. Draw the demand and supply curves.

b. Derive the demand for transportation.

c. What is the point price elasticity of demand at Pd=5?

d. What is the arc elasticity of demand between Pd=4 and Pd=5?

e. If the transportation supply is Q = 2 T, find the equilibrium for transportation.

f. Find the equilibrium price and quantity at both demand and supply locations.

g. What is the expenditure in equilibrium?

Reference no: EM133278149

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