American mining company is interested in obtaining quick

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American Mining Company is interested in obtaining quick estimates of the supply and demand curves for coal. The firm's research department informs you that the elasticity of supply is approximately 1.7, the elasticity of demand is approximately -0.85, and the current price and quantity are $41 and 1,206, respectively. Price is measured in dollars per ton, quantity the number of tons per week.

a. Estimate linear supply and demand curves at the current price and quantity.

b. What impact would a 10% increase in demand have on the equilibrium price and quantity?

Reference no: EM13391482

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