The market for Super Duper Skis has supply and demand curves given by P=4Q s – 2
ID: 1191935 • Letter: T
Question
The market for Super Duper Skis has supply and demand curves given by
P=4Qs – 2CL and P=12-2Qd +5I respectively. I=Income =$200, and CL=cost of labor = $10/hr. What quantity of Super Duper Skis at what price will be sold in equilibrium?
A. P=668, Q=172.
B. P=672, Q=172.
C. P=1032, Q=668.
Refer to Question 13. What is the own price elasticity of demand, at equilibrium?
A. 3.88
B. 1.94
C. 0.13
D. 7.77
A. P=668, Q=172.
B. P=672, Q=172.
C. P=1032, Q=668.
Refer to Question 13. What is the own price elasticity of demand, at equilibrium?
A. 3.88
B. 1.94
C. 0.13
D. 7.77
Explanation / Answer
equlibirum level is where
4Qs – 2CL = 12-2Qd +5I
4Q - 20 = 12- 2Q + 1000
6Q = 1032
Q= 172
PUT IT IN P=4Qs – 2CL = 4*172 -20 = $668
A. P=668, Q=172.
13.
Ed= 300-18/100-15*100+15/2 / 300+18/2 = 282/85*57.5/159=16215/13515=1.94
therefore the Demand is Elastic !
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