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1) Suppose the demand for tablets is given Q = 2000 - 10 P. Where Q is the quantity demanded and P is the price of tablets. Plot the demand curve. (Price in the vertical and quantity in the horizontal axis)
2) What is the inverse demand?
3) What is the slope of the inverse demand?
4) Suppose supply is given by Q = 2 P - 100. Plot supply together with demand. Find the equilibrium price and quantity.
5) Calculate the elasticity of demand when the price goes up from $100 to $101.
6) What is the price elasticity of demand and supply at the equilibrium price? (Hint: Make the increment in price equal to $1)
If the price that a firm charges is higher than its ________________ cost of production for that quantity produced, then the firm will earn profits.
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Aristotle wrote in the Nicomachean Ethics that ethical virtues are what? "If someone appears to be violating the consistency principle, then the burden of proof is on that person to show he or she is in fact not violating the principle." What fallacy..
If a nonbinding price floor is imposed on a market, then:
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