Please don’t answer subpart A. Subparts D, E, F correspond to question 3 in the 1st photo 3. Given the demand function of good 1: Q1Q1: the demand for good 1P1: the price for good 1P2: the price of good 2Answer the following questions= 300 10P1 + 0.5P2a. What is the inverse demand function of good 1?b. Derive the expression of total revenue in terms of quantity of good 1(Q1) and price oates) E v E v E E E三回三=|加vAaBbCcDdEeAaBbCcDdEeNormalBody Textd. If P2=2, what's the optimal quantity to produce for good 1? What's the correspondingprice to charge?e. If P1=3 and P2=2, what's the own price elasticity of good 1? Write out the formula,calculate and interpret.f. Are good 1 and good 2 complements or substitutes? Why?d States)רétv

Q = 300 - 10P1+0.5P2 10P1 = 300 + 0.5P2-Q P1 = 30 + 0.05P2 - 0.1Q

3. Given the demand function of good 1: Q1 = 300 Q1: the demand for good 1 P1: the price for good 1 P2: the price of good 2 Answer the following questions – 10P1 + 0.5P2 %3D a. What is the inverse demand function of good 1?

3. Given the demand function of good 1: Q1 = 300 Q1: the demand for good 1 P1: the price for good 1 P2: the price of good 2 Answer the following questions – 10P1 + 0.5P2 %3D a. What is the inverse demand function of good 1?

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

Please don’t answer subpart A. Subparts D, E, F correspond to question 3 in the 1st photo

E v E v E E E
三回三=|加v
AaBbCcDdEe
AaBbCcDdEe
Normal
Body Text
d. If P2=2, what's the optimal quantity to produce for good 1? What's the corresponding
price to charge?
e. If P1=3 and P2=2, what's the own price elasticity of good 1? Write out the formula,
calculate and interpret.
f. Are good 1 and good 2 complements or substitutes? Why?
d States)
ר
étv

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