What is the price elasticity of supply at equillibrium

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Chuck, Michael and Hakeem are three retired basketball players. They determine that in Madison there is demand for private basketball coaching. The demand and supply curves for private basketball coaching are Qd = 50 ? 0.5? P and QS = P ?10 respectively.

(1) Find the equilibrium price and quantity

(2) What is the price elasticity of demand at the equilibrium calculated in part (1)? Is demand for basketball coaching elastic or inelastic?

(3) Calculate the price elasticity of demand on the segment (arc) of the demand curve between the prices of $20 and $40

(4) What is the price elasticity of supply calculated at the equilibrium calculated in part (2)? Is the supply of basketball coaching elastic or inelastic?

Reference no: EM13177576

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