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 ofQSX= 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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Accounting
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
Volume 1, 2nd canadian Edition
176509739, 978-0176509736, 978-0176509743
