The demand and supply functions of a good are given by SP = 10QD – 142 P = -Qs+71 { %3D where P denotes the price, Qp the quantity demanded and Qs the quantity supplied. (a) Determine the equilibrium price and quantity. (b) Sketch the demand and supply functions on the same graph. Label the axes and the intercepts clearly.

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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(a) Determine the equilibrium price and quantity.
(b) Sketch the demand and supply functions on the same graph. Label the
axes and the intercepts clearly. 

The demand and supply functions of a good are given by
SP= 10 QD – 142
P = -Qs + 71
where P denotes the price, Qp the quantity demanded and Qs the quantity
supplied.
(a) Determine the equilibrium price and quantity.
(b) Sketch the demand and supply functions on the same graph. Label the
axes and the intercepts clearly.
Transcribed Image Text:The demand and supply functions of a good are given by SP= 10 QD – 142 P = -Qs + 71 where P denotes the price, Qp the quantity demanded and Qs the quantity supplied. (a) Determine the equilibrium price and quantity. (b) Sketch the demand and supply functions on the same graph. Label the axes and the intercepts clearly.
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