Price elasticity of demand and price elasticity of supply

Assignment Help Business Economics

Reference no: EM138894

Q. If the demand function for bananas is given by the following equation:

Qd=54,000-6,000P,

and the supply function for bananas is given by the equation:

Qs = -30,000 + 10,000P.

The price is measured by SR per Kg and the quantity is measured by kilogram.

a. Find out the equilibrium price and equilibrium quantity of bananas.

b. What is the minimum price per Kg. at or below which producer will not be ready to supply any quantity? Explain your answer.

c. What is the maximum price per Kg. at or above which consumers are not ready to demand any quantity? Explain your answer.

d. Price Elasticity of Demand and Price Elasticity of Supply at the equilibrium point.

Reference no: EM138894

Questions Cloud

Building the right organisational culture : Explore the role the organisational culture plays in achieving organisational objectives. Include a discussion on why it is important, and how to change an established culture so that it is better aligned with achieving the desire organisational outc..

Minimum annual equivalent cost : what is the expected economic life for this water pump and what is the minimum annual equivalent cost.

Intended to generate positive externalities : Which one of the following government actions is intended to generate positive externalities.

Equilibrium of such a monopolistic firm : Illustrate graphically the equilibrium of such a monopolistic firm.

Price elasticity of demand and price elasticity of supply : Price Elasticity of Demand and Price Elasticity of Supply at the equilibrium point.

Piece of commercial real estate : Then you inherited a piece of commercial real estate bringing in $12,000 in rent annually.

Equilibrium level of output in this economy : what is the short run equilibrium level of output in this economy.

Has a registered trademark : A firm has developed a new product for which it has a registered trademark.

User Account

All Pages