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The table below shows the demand and supply schedules for a commodity. Price (Sh. Per Kg.) Demand (Kg) Supply (Kg) 10 100 20 20 85
The table below shows the demand and supply schedules for a commodity.
| Price (Sh. Per Kg.) | Demand (Kg) | Supply (Kg) |
| 10 | 100 | 20 |
| 20 | 85 | 36 |
| 30 | 70 | 53 |
| 40 | 55 | 70 |
| 50 | 40 | 87 |
| 60 | 25 | 103 |
| 70 | 10 | 120 |
Required:
- Determine the demand and supply functions for this market
- what is the price elasticity of demand for this commodity at equilibrium
- how much can a firm try to make its products more price inelastic
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Introductory Econometrics A Modern Approach
Authors: Jeffrey Wooldridge
7th Edition
1337558869, 978-1337558860
