Question: 1 . Equilibrium quantity Q = 8 0 0 0 , equilibrium price P = 2 0 . Demand elasticity is - 1 . 5
Equilibrium quantity Q equilibrium price P Demand elasticity is Supply
elasticity is
a Reconstruct linear demand and supply functions
b Pick on of the interventions and analyze the impact:
i A price floor at P
ii A price ceiling at P
iii. A tax of per unit
iv A subsidy of per unit
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