What is price elasticity of demand at the equilibrium price

Assignment Help Microeconomics

Reference no: EM131602230

Assignment: Intermediate Microeconomics

QUESTION 1:

A perfectly competitive industry has identical firms and identical consumers. Each consumer earns $10,000 a year.

1. The demand curve is Q=100-5P.
2. The supply curve is Q=20+3P.

a)What is the equilibrium price?
b)What is the equilibrium quantity?
c)What is the price elasticity of demand at the equilibrium price?
d)What is the price elasticity of supply at the equilibrium price?
e)If consumers earn $11,000 a year, their demand curve changes to Q = 104 - 4P. What is the income elasticity of demand at an income of $10,000?

QUESTION 2:

Find the slope of an assumed linear demand curve for Cinema tickets, when persons purchase 1,000 at $5.00 per ticket and 200 at $15.00 per ticket

QUESTION 3:

How would the following changes in price affect total revenue? That is, would total revenue increase, decline, or remain unchanged?

a) Price falls and demand is inelastic
b) Price rises and demand is elastic
c) Price rises and supply is elastic
d) Price rises and supply is inelastic
e) Price rises and demand is inelastic
f) Price falls and demand is elastic
g) Price falls and demand is of unit elasticity

QUESTION 3:

Figure 3.1 and 3.2 describe a shift in demand in the short run and long run in a competitive market. With your knowledge on how firms operate in a competitive market. Give a detailed explanation to the figures.

Reference no: EM131602230

Questions Cloud

Change in net working capital : What was the company's 2016 change in net working capital, or NWC?

Calculating interest rates : Calculating Interest Rates Assume the total cost of a college education will be $320,000 when your child enters college in 18 years.

Metrics to measure marketing performance : Present recommendations for metrics to forecast and measure marketing performance. These will be will be used in your strategic marketing plan.

What is the essence of marketing : What acronym refers to the ratio of money generated in sales by a marketing campaign relative to the amount of money invested?

What is price elasticity of demand at the equilibrium price : What is the equilibrium price? What is the equilibrium quantity? What is the price elasticity of demand at the equilibrium price?

At what labeled points is the slope of the graph positive : For the function shown in Figure, at what labeled points is the slope of the graph positive? Negative? At which labeled point does the graph have the greatest.

Discuss the use of body cameras : As to use of law enforcement of license plate readers and drones

List the given quantities in order-smallest to largest : The graph of f(t) in Figure gives the position of a particle at time t. List the following quantities in order, smallest to largest.

Review the information on questionnaire design : One of the most difficult parts of doing marketing research is creating good questionnaires. Review the information on questionnaire design.

User Account

All Pages