Economics book faces demand curve

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Reference no: EM131085053

A firm that sells an economics book faces a demand curve:

P = 200 – 5qe,

while another firm that sells a chemistry book faces a demand curve:

 P = 150 – 10 qc.

Suppose that both firms, independently, decide to sell their books for $50.

a. Calculate how many economics books will be demanded from the first firm and how many chemistry books will be demanded from the second firm. Show work.

b. Calculate the point price elasticities of demand for the two firms at P = $50 and the quantities calculated in part a.

c. Explain whether the calculated elasticities represent elastic, inelastic, or unitary elastic demand. Which of the two firms has a more elastic demand? Explain.

Reference no: EM131085053

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