Question
Suppose Good X is sold in a competitive market and has a straight-line demand curve that cuts the price-axis at $150 and the quantity axis
Suppose Good X is sold in a competitive market and has a straight-line demand curve that cuts the price-axis at $150 and the quantity axis at 60,000 units, and the supply curve has the equation of Q = 800P - 30,000.
(a) Find the demand function.
(b) What will be equilibrium price and quantity for this market?
(c) What is the elasticity of demand at the equilibrium point?
(d) Based on the answer to (c), comment on whether the equilibrium point is profit- maximizing?
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a A Linear demand Bunetion is 60 000 3D A...
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Econometric Analysis
Authors: William H. Greene
5th Edition
130661899, 978-0130661890
