Let P denote the price of a product that is produced using a single input whose price

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Let P denote the price of a product that is produced using a single input whose price is W. The demand function for the product is Qd = 10 -, and the supply function is Qs = if P > Wand Qs = 0 if P ≤ W. How does the equilibrium price depend on W? What is the elasticity of the equilibrium price P with respect to W when W = 1?
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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