Price elasticity of demand for oatmeal is constant and equal

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Second Problem The price elasticity of demand for oatmeal is constant and equal to -1. When the price of oatmeal is $10 per unit, the total amount demanded is 6,000 units. 1. Write an equation for the demand function. Graph this demand function with blue ink. (Hint: If the demand curve has a constant price elasticity equal to , then D(p) = ap for some constant a. You have to use the data of the problem to solve for the constants a and that apply in this particular case). 2. If the supply is perfectly inelastic at 5,000 units, what is the equilibrium price? Show the supply curve on your graph and label the equilibrium with an E.

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Price elasticity of demand for oatmeal is constant and equal : Second Problem The price elasticity of demand for oatmeal is constant and equal to -1. When the price of oatmeal is $10 per unit, the total amount demanded is 6,000 units. 1. Write an equation for the demand function. Graph this demand function with ..
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