Model of supply and demand not predict

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1. If as price decreases by 10 percent, total revenue increases by 5 percent, what is true about demand?

2. In 2014, India substantially increased its import tariff on sugarcane. Which of the following would the model of supply and demand not predict?

3. A local market for new wood pallets has daily demand described by P=195-0.2Q and supply described by P=87+0.1Q. Calculate the equilibrium quantity.

4. Suppose a market has a supply described by P=5.0+0.2Q and a demand described by P=8.0-0.1Q. Calculate the equilibrium price.

Reference no: EM13798705

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