Question
Hi I solved this question by mathematically and did the calculation but I need to interpret and explain: . The U.S. Department of Agriculture (USDA)
Hi I solved this question by mathematically and did the calculation but I need to interpret and explain:
. The U.S. Department of Agriculture (USDA) is interested in analyzing the domestic market for corn. The USDA's staff economists estimate the following equations for the demand and supply curves: Qd = 1,600 - 125P Qs = 440 + 165P Quantities are measured in millions of bushels; prices are measured in dollars per bushel.
. Calculate and interpret the price elasticises of supply and demand at the equilibrium values.
Answer- For the own price Elasticity of Demand E= -125 4/1100= -0.45
For the own price Elasticity of Supply= 165 4/1100= 0.60
Explainantion and interpretation is required by relating to the question:
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Essentials Of Statistics For The Behavioral Sciences
Authors: Susan A. Nolan
3rd Edition
9781464107771
