What is the equilibrium value of price and quantity

Assignment Help Business Economics

Reference no: EM13999229

Intermediate Microeconomics -- Assume the market for generic aspirin is perfectly competitive. At equilibrium, the price elasticity of demand for generic aspirin is characterized as ED = − 1/5. The linear market demand and linear market supply can be characterized as follows:

QD =b−35P

QS = 510P − 938

Where b is a numerical value, P represents the price of one box of generic aspirin, and Q represents the number of boxes demanded or supplied per day. (a) What is the equilibrium value of price and quantity? (b) What is the value of b?

Reference no: EM13999229

Questions Cloud

Economic theories that are germane to provision of services : Imagine that you are a manager running a unit in a rehabilitation center. Up to this point, your primary population of payers has been elderly patients who come into the center for physical therapy. What potential solutions would you suggest to your ..

Industrial organization view of market versus resource-based : Smart Phone Market The smart phone market has been dominated by Apple, but recently the Droid has been able to leverage Google’s information services into market gains while Blackberry, known for its secure business oriented network, has attempted to..

What is the initial value of the new land : What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?

The various estates in land described : The various estates in land described by the author of your text in Chapter 3 arose mostly out of the struggle between the English Crown’s need for revenue and the efforts of the holders of the land to avoid taxes. Are these estates useful in this da..

What is the equilibrium value of price and quantity : Intermediate Microeconomics -- Assume the market for generic aspirin is perfectly competitive. At equilibrium, the price elasticity of demand for generic aspirin is characterized as ED = − 1/5. Where b is a numerical value, P represents the price of ..

What is the effective annual rate of return : An engineer invested $10,000 in the stock market. For the first six years, the average return was 8% annually. For the next four years, the return as 4% annually. What is the value of the account after 10 years? What is the effective annual rate of r..

Determine the health and direction of our economy : Explain a/an economic indicator used to determine the health and direction of our economy. Discuss whether the indicator is cyclical or counter cyclical. What are some other indicators of how well the economy is doing not mentioned directly in the te..

Calculate the amount of interest expense : Calculate the amount of interest that Mason should capitalize in 2011 and 2012 using the specific interest method.

Local community wants to purchase a pool heater : A local community wants to purchase a pool heater for its public pool in one year. The cost of the heater is $1,000,000. The local bank is willing to pay the interest on this amount at 6%, compounded monthly to help support the purchase of the pool h..

User Account

All Pages