Question

Discuss why you might use a constant elasticity demand curve to calculate consumer surplus changes from a project. If you are given an elasticity estimate of -0.5 and a point such as Q =2, P=$9. What is the equation for the demand function?

Answer #1

The equation for a demand curve is P=2/Q. What is the elasticity
of demand as price falls from 5 to 4? What is the elasticity of
demand as the prices falls from 9 to 8? Would you expect the
answers to be the same? Why/why not?

Holding price and quantity constant, why does consumer surplus
from a product decline if the demand curve becomes more
elastic?

1. Find the consumer surplus for the given demand function and
sales level. (Round your answer to the nearest integer.)
p =
18,000e−0.03q, 49
$ 36.015 < ---- wrong answer
.
2. Find the consumer surplus for the given demand function and
sales level. (Round your answer to two decimal places.)
p = 60 − 3.7 square root q, 100
$ _______
.
3. A demand curve is given by p = 490/(q + 5). Find
the consumer surplus when the selling...

1.A demand function given by: Q = 240 ‒ 3P. What is the price
elasticity of demand when the price is P = $10? You will have to
use the point elasticity formula. The price elasticity of demand at
this price is ___________
2.Consider the same demand equation, Q = 240 ‒ 3P. If a firm
sells at the unit elastic price on this demand curve, what is the
total revenue it will receive? The total revenue received at this...

8. Find the consumer surplus when the sales level is 100 if the
demand curve is given by p(x) = 1000−43 6 √ x.
9. Estimate the cardiac output using Simpson’s rule if 5mg of
dye in injected into a pulmonary artery and 6 the concentration
measurements from a peripheral artery near the aorta are as shown
in the table below. t (min) 0 1 2 3 4 5 6 7 8 9 10 11 12 c(t)
(mg/L) 0 0.04...

how
do you draw the demand curve q=250-10p
calculate the price elasticity of demand at prices of $5, $10, and
$15 to show how it changes as you move along this linear demand
curve

The demand curve of a perfectly competitive product is
described by the equation:
P = $1000 – Q where Q =
thousands
The supply curve is given by
P = $100 + 2Q where Q =
thousands
Graph the demand and supply curves; use a grid size of 100.
Calculate the equilibrium price and quantity (carefully state the
units). Find the consumer surplus CS, the producer surplus
PS, and the deadweight loss DWL, carefully stating the units.

. If the equation for a demand curve is
P=45-3Q. What is the elasticity in moving from a quantity of 5 to a
quantity of 6?
4. The equation for a demand curve is P=4/Q.
What is the elasticity of demand as price falls from 5 to 4?
5. The equation for a supply curve is 2P=Q.
What is the elasticity of supply as price rises from 3 to 4?
6. CenturyLink Field has 80,000 seats. What is
the shape...

Suppose the market demand for a commodity is given by the
download sloping linear demand function:
P(Q) = 3000 - 6Q
where P is a price and Q is quantity. Furthermore, suppose the
market supply curve is given by the equation:
P(Q) = 4Q
a) Calculate the equilibrium price, quantity, consumer surplus
and producer surplus.
b) Given the equilibrium price calculated above (say's P*),
suppose the government imposes a price floor given by P' > P*.
Pick any such P'...

For the demand curve Q=50−P, what is the own-price elasticity of
demand when P=16 2/3 (that is, 50/3)? Is demand elastic, inelastic,
or unit elastic at that point?
a) -0.5, inelastic
b) -1, unit elastic
c) -0.5, elastic
d) 33.3, inelastic
e) 33.3, elastic

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