draw demand curve, Economics, Microeconomics

Suppose that the following equation characterizes the demand for primary education in a developing country X:

Q = 100 – 2P

Where Q is quantity demanded in years of schooling and P is the cost of schooling in dollars.

A. Please draw this demand curve.
B. Suppose that the price of schooling is $20 per year of schooling and it suddenly rises to $40. Compute the point price elasticity of demand at the initial price level and at the final price level.
C. Continuing with the price change in the last question, please compute the arch price elasticity of demand. According to this calculation, is the demand elastic or inelastic?
Posted Date: 2/1/2012 2:18:39 PM | Location : United States







Related Discussions:- draw demand curve, Economics, Assignment Help, Ask Question on draw demand curve, Economics, Get Answer, Expert's Help, draw demand curve, Economics Discussions

Write discussion on draw demand curve, Economics
Your posts are moderated
Related Questions
having utility function U(x,y)= x1/2=y1/2, determine the hicksian demand function, expenditure function and indirect utility function.

Suppose that the U.S. Department of Agriculture (USDA) administers the price floor for cheese, set at $0.17 per pound of cheese. (The price floor is officially set at $16.10 per hu

1. By using the Production possibility Curve (PPC), analyze the microeconomic theories such as scarcity, choices and opportunity costs. Provide relevant graph with numerical exampl

Calculate the price elasticity of demand or supply for the following function when P=8 p=6(I)p=40-0.5q

I need someone to solve my assignment

Implications for the Role of Economic Theory : Like the schedule for the marginal efficiency of capital, expectations about the future market rate of interest underlie the li

Random sampling is a technique for sampling which we can select a group of subjects or a sample for study from a larger group or a population. Each entity individually is chosen en

Introduction for a natural monopoly assignment

what are the sources of oligopoly power

1. Assessment Criteria The coursework will be marked on the overall outcome including: structure, quality of reasoning, quality of written English, data analysis, referencing, sty