Price elasticity of demand and price elasticity of supply

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Reference no: EM1312314

Consider a competitive market for which the quantities demanded and supplied (millions per year) at various prices are given as follows:

	Quantity	Quantity
Price	Demanded	Supplied
60	22	14
80	20	16
100	18	18
120	16	20

a. Calculate the price elasticity of demand at the prices 80, and 100.

b. Calculate the price elasticity of supply at the prices 80, and 100.

c. What is the equilibrium price and quantity? Explain.

d. If there government were to set the price at 80, describe the impact on the market.

Reference no: EM1312314

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