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Kate asked in Social ScienceEconomics · 1 decade ago

ECON Final Tomorrow, PLEASE Help.?

Given: Demand : Q=9000-6P

Supply: Q=-3000+9P

A.) Find equilibrium price and quantity.

I have calculated this to be P= $800 and Q= 4,200

Could you please show me how to work out B and C

B.) What is the price elasticity of demand at the equilibrium price and quantity?

C.) What is the price elasticity of supply at the equilibrium price and quantity?

Update:

Thank you so much! Anjaree, I truly do appreciate your help. Take care, Kate

1 Answer

Relevance
  • Anonymous
    1 decade ago
    Favorite Answer

    A. Demand =Supply, 9000-6P= -3000+9P

    P=12,000/15=800

    Q=9,000-6x800=4,200.

    B. Elasticity= dQ/dP x P/Q= -6x800/4200= -1.143, elastic.

    C.Elasticity= 9 x 800/4200= +1.714, elastic

    Source(s): Anjaree
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