1) When the demand function is 2Q - 24 + 3P = 0, calculate the price elasticity of demand when P = 4 and find the marginal revenue when Q=3.
2) A market consists of three people, A, B , and C, whose individual demand equation are as follows:
A: P= 35 - 0.5QA
B: P= 50 - 0.25QB
C: P= 40 - 2.00QC
The industry supply equation is given by QS = 40 + 3.5P
a) Determine the equilibrium price and quantity.
b) Determine the amount that will be purchased by each individual.
1)
2Q-24+3P=0
Q=12-1.5P
Where
2)
P=35-0.5QA ; QA=70-2P
P=50-0.25QB ;. QB=200-4P
P=40-2QC ; QC=20-0.5P
Qs=40+3.5P
Where
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