Home / Expert Answers / Economics / q-30-2p-3ps-4pc-0-1y-q-8-2p-0-5pi-where-ps-4-pc-3-y-40-and-pi-4-use-pa928

(Solved): Q = 30 2P + 3PS 4PC + 0.1Y Q = 8 + 2P 0.5PI where PS = 4, PC = 3, Y = 40, and PI = 4 Use ...



Q = 30 ? 2P + 3PS ? 4PC + 0.1Y Q = 8 + 2P ? 0.5PI where PS = 4, PC = 3, Y = 40, and PI = 4 Use the above equations and values of the variables to solve the following problems: a) Solve for the equilibrium price and quantity b) Draw a graph of the market. Be sure to label the supply curve with an S, label the demand curve with a D, properly calculate the y-intercept of the demand curve and the y-intercept of the supply curve, and use the calculated equilibrium from part a to label the equilibrium in the graph c) At P = $9 calculate QD, QS, state whether there is a surplus or shortage, and calculate the amount of the surplus or shortage. d) Calculate the price elasticity of demand at the equilibrium.



We have an Answer from Expert

View Expert Answer

Expert Answer


We have an Answer from Expert

Buy This Answer $5

Place Order

We Provide Services Across The Globe