What is the price elasticity of demand at equilibrium point

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Suppose the supply and demand for milk are described by the following equations:

Qd = 600 - 100P
Qs = -150 + 150P

where P is the price in dollars per litre, Qd is the quanity demanded in millions of litres per year, and Qs is the quanity supplied in millions of litres per year.

a) determine the equilibrium price and quanity

b) what is the price elasticity of demand atthe equilibrium point

Reference no: EM13242703

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