Question: Consider a competitive market for which the quantities demanded and supplied at various prices are given below: PriceQdQs 519 437 355 273 191 a) What

Consider a competitive market for which the quantities demanded and supplied at various prices are given below:

PriceQdQs

519

437

355

273

191

a) What are the equilibrium price and quantity?

b) What will happen to the market if the government sets a price of $2? Explain and quantify your answer.

(YOU MUST SHOW YOUR WORK TO RECEIVE CREDIT)

c) Calculate the price elasticity of supply at a price of $4. (YOU MUST SHOW YOUR WORK TO RECEIVE CREDIT)

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Consider a competitive market for which the quantities demanded and supplied at various prices are given below:

PriceQdQs

519

437

355

273

191

a) What are the equilibrium price and quantity?

b) What will happen to the market if the government sets a price of $2? Explain and quantify your answer.

(YOU MUST SHOW YOUR WORK TO RECEIVE CREDIT)

c) Calculate the price elasticity of supply at a price of $4. (YOU MUST SHOW YOUR WORK TO RECEIVE CREDIT)

View keyboard shortcuts

Edit

View

Insert

Format

Tools

Table

12pt

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