Referring to the following data, answer the following questions. The pencil market is characterized by the following supply and demand functions: QO = 36P Qd = 160-4P Where Q = number of boxes of pencils P = price of a box of pencils. What is the balance quantity in the market? Calculate the price elasticity of demand at the point of equilibrium. Calculate the consumer surplus at the equilibrium point.

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
Section3.3: The Market: Putting Supply And Demand Together
Problem 3ST
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Referring to the following data, answer the following
questions.
The pencil market is characterized by the following
supply and demand functions:
QO = 36P
Qd = 160-4P
Where
Q = number of boxes of pencils
P = price of a box of pencils.
What is the balance quantity in the market?
Calculate the price elasticity of demand at the
point of equilibrium.
Calculate the consumer surplus at the equilibrium
point.
Transcribed Image Text:Referring to the following data, answer the following questions. The pencil market is characterized by the following supply and demand functions: QO = 36P Qd = 160-4P Where Q = number of boxes of pencils P = price of a box of pencils. What is the balance quantity in the market? Calculate the price elasticity of demand at the point of equilibrium. Calculate the consumer surplus at the equilibrium point.
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