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Business Math Price, Supply, and Demand Questions II

Fuzzyllama

New member
Sep 20, 2012
2
I need some help finishing a few problems on my assignment. Any help is appreciated

3. The followin equations represent demand curves for a commodity; q. A. q=100-p B. q=10+p C. q=50. What is choke price, slope and price elasticities of demand in the neighborhood of q=100 and q=50.

4. Assume market demand is created by P=120-6Q and P=60-30Q. Supply is created by 10 firms with cost curves of TC=q^2. What is market demand and supply? What is equilibrium price and quantity? How big is CS and PS?

Thanks in advance for any help!
 
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Sudharaka

Well-known member
MHB Math Helper
Feb 5, 2012
1,621
3. The following equations represent demand curves for a commodity; q. A. q=100-p B. q=10+p C. q=50. What is choke price, slope and price elasticities of demand in the neighborhood of q=100 and q=50.
Hi Fuzzyllama, :)

I don't know much about economics and the mathematics associated with it, but I think that the second demand curve that you have given is incorrect. Except under special circumstances, demand curves should have a negative slope according to the law of demand. But the curve, \(q=10+p\) seem to have a positive slope. Is there a typo?

Kind Regards,
Sudharaka.