The inverse demand function is P = 110 0.5q, and the inverse supply function is P
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Question:
The inverse demand function is P = 110 – 0.5q, and the inverse supply function is P = 320 +5q - 20r, where r is the rental cost of capital.
a) Show how the equilibrium price and quantity vary with r?
b) Graph the demand and supply curve given that the rental cost of capital is 1.
c) Calculate the slope of the demand and supply curve given that the rental cost of capital is 1.
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9780135628478
17th Edition
Authors: Srikant M. Datar, Madhav V. Rajan
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