Question

The demand function for a product is   QdX = 1000 – 10 Px   and its supply function is...

The demand function for a product is   QdX = 1000 – 10 Px   and its supply function is QsX = 100 + 2 Px

Calculate the equilibrium price and equilibrium quantity of the good.

a.

75; 250
b.

90; 100
c.

70; 200
d.

100; 100

If the value of the price elasticity of X is 0.45, then a price decrease of X will

a.

decrease revenues for the suppliers of X
b.

increase revenues for the suppliers of X
c.

will not affect revenues for the suppliers of X
d.

will increase or decrease revenues for the suppliers of X
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Homework Answers

Answer #1

Hence, Answer for Q-1 is (75,250)

Answer for Q-2 is Option "A" i.e. decreases revenue for the suppliers of X.

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