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The price elasticity of supply at market equuilibrium values

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Reference no: EM13744011

Suppose the market demand for a product is given by:

Qd= 500 -15P+20I and the market supply schedule is Qs= -25+10P+10K. The inital values are I=20 and K=5

a) What are the equilibrium price and quantity in this market?

b) At the market equilibrium, what is the price elasticity of demand and the income elasticity of demand?

c) What is the price elasticity of supply at market equuilibrium values?

Reference no: EM13744011

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