GIVEN BY THE EQUATIONS (1) QD = 4 – P (2) QS = -2+P A) WHAT IS THE PRICE ELASTICITY OF THE DEMAND CURVE AT THE POINT OF EQUILIBRIUM? B) WHAT IS THE PRICE ELASTICITY OF THE SUPPLY CURVE AT THE POINT OF EQUILIBRIUM?

/in /by

GIVEN BY THE EQUATIONS

(1)         QD
= 4 – P

(2)         QS
= -2+P

A)    WHAT IS THE PRICE ELASTICITY OF THE DEMAND CURVE AT THE
POINT OF EQUILIBRIUM?

B)    WHAT IS THE PRICE ELASTICITY OF THE SUPPLY CURVE AT THE
POINT OF EQUILIBRIUM?

You might also like
Which of the following is a microeconomics question? (A) Is it sensible for a government to subsidize tobacco production? (B) Why do some countries grow faster than others? (C) Should National Assembly and the President take action to reduce global warming? (D) Should the government attempt to influence the interest rate to lower inflation?
After graduation, you work as a Financial Analyst in a reputable multinational company in Kuala Lumpur. Your superior has assigned you a new task. You are required to analyse the following bonds. Company. Petron Berhad Shell Corporation Coupon rate per annum 10% 10% Maturity in years 15 10 Face value per bond $1,000 $1,000 Yield to maturity per annum 11% 13% Current selling price per bond $900 $1,100 Based on the above information, you are required to: a) Compute the current bond prices for both companies if the interest payment is once a year. b) Based on the above result, provide your conclusion. c) Discuss three main differences between conventional bond and Islamic bond.
An empirical study tested for the Ricardian equivalence theorem by estimating the following equation: _�At _= _a_0 + _a_1_�Bt _+ _μt_ _ _ where _A _is the public’s net real financial assets (excluding its holdings of government bonds), _B _is real public debt and _μ _is a random term. Does _a_ˆ1 = 1 confirm the Ricardian equivalence theorem? US aggregate time series tend to yield _a_ˆ1 = 0. What would this imply for the validity of the Ricardian equivalence theorem? Formulate and specify at least one other estimation equation for testing the Ricardian equivalence theorem.
Calculate consumer surplus for the demand curve P=1-Q and the supply curve P=1+Q
For the total cos function gives as TC=15+3Q-1.5Q2+7.5Q3-45Q4. Compute the Tfc, Tvc, Afc, Avc and Atc
Suppose that a consumer with income of birr 90 wants to spend the whole income on good B and good A. Assume that the goods are consumed on a one-to-one basis and one good is worthless without the other. The price of good A and B are both 3 birr. A. How many units of good A&B will the consumer buy? B. If the price of good A increases to birr 6, how many he/she buy of each? C.vWhat type of preferences does consumption of the two goods represent? What is the shape of the indifference curve for this type of preference?
“If a firm cannot earn profits in the short run, it will shut down”. Is it a true or false statement? Give your reasons.
Discuss one (1) reason for the downward sloping aggregate demand curve.