Assume there are 500 buyers of product x with individual demand function of dd 100 - 0.25px. And suppose that the market supply function of 100 identical sellers is given as SSD 145PX+30,000. Then compute the equilibrium price and the market clearing quantity demand. Sketch in graph.

Assume there are 500 buyers of product x with individual demand function of dd 100 - 0.25px. And suppose that the market supply function of 100 identical sellers is given as SSD 145PX+30,000. Then compute the equilibrium price and the market clearing quantity demand. Sketch in graph.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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Question

Assume there are 500 buyers of product x with individual demand function of dd 100
0.25px. And suppose that the market supply function of 100 identical sellers is given as SS
145PX+30,000. Then compute the equilibrium price and the market clearing quantity demand.
Sketch in graph.

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