What are the values of the demand and supply elasticities

Reference no: EM13207328

Demand and supply curves for cigarettes are given by:

$Q_{d} = \frac{128}{p^{1/2}}$
and
$Q_{s} = 4P^{2}$

where P is the price of cigarettes in dollars and Q is in millions of cigars

Using calculus, show that the demand and supply curve have constant elasticity along their entire length. What are the values of the demand and supply elasticities?

Reference no: EM13207328

Questions Cloud

What form of business ownership should you choose : Let us assume you and ten of your friends are going to open and invest in a business. You do not want to pay double taxation on the profits. You want a type of ownership where profits must be distributed based on how much each person has invested ..

How long will take mexicos real gdp per person to reach uss : Apply the rule of 70 to solve the following problem. Real GDP per person in Mexico in 2005 was about $12,000 per person, while it was about $48,000 per person in the United States. If real GDP per person in Mexico grows at the rate of 10 percent p..

What numerical amount did glitter gulchs real output change : Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues on newly mined gold from $10 million to $20 million between one year and the next. Assuming that the price of gold increased by 100 percent over the same period.

Did you give her a complete showing of the market : suppose a person defects from cuba (a country that generally disregards the use of markets) to the united states and asks to see a market in action. when would you take her did you give her a complete showing of this market

What are the values of the demand and supply elasticities : where P is the price of cigarettes in dollars and Q is in millions of cigars Using calculus, show that the demand and supply curve have constant elasticity along their entire length. What are the values of the demand and supply elasticities

What was the capital gain value of eisners stock options : Eisner's bonus was $2.6 million in 1996 and $6 million in 1987. Including the stock options he exercised, his compensation in 1988 was about $41 million, a record at that time for any U.S. executive. In 1993, his total compensation was about $202 ..

Estimate the maintenance cost on a new car : Each subsequent year, this cost is expected to increase by $100. How much would you need to set aside when you bought a new car to pay all future maintenance cost if you planned to keep the vehicle for 7 years? Assume interest is 5% pear.

Calculate real gdp per capita in 2007 and 2008 : What was the growth rate of the population between 2007 and 2008, round to the nearest percent Calculate real gdp per capita in 2007 and 2008. What was the growth rate of the real gdp capita between 2007 and 2008, round to the nearest percent

What will happen to the equilibrium price and quantity : Suppose you are studying the market for shoes. Two events take place simultaneously. First, price of leather decreases, and second, consumers' income increases. What will happen to the equilibrium price and equilibrium quantity of shoes

User Account

All Pages