Answer to Question #175093 in Microeconomics for satti

Question

Q2.(A) Given the following functions

           Q=10-2P²Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Q= 5+3P

Find

i)                   Nature of each function

ii)                 Market price and Market quantity

iii)               Elasticity of Q_d and Q_s at equilibrium price

Answer 1

$$Q_D=10-2p^2$$

$$Q_S=5+3p$$

$$10-2p^2=5+3p$$

$$p=1$$

$$Q=8$$

$$E_D=-\frac {1}{2}$$

$$E_S=\frac {3}{8}$$