The market for commodity X is described by the following demand and supply curves. 2 Q(p) = 25 -P . Q(p) = -3 + 3P . (a) Which of the two curves is the demand curve and which is the supply curve? How did you know? (b) Graph both curves (on the same graph)and find the equilibrium price and the equilibrium quantity transacted. (c) Solve algebraically for the equilibrium values in part (b). (d) Find the price elasticity of demand at equilibrium and interpret your result. .-(1) (2)

The market for commodity X is described by the following demand and supply curves. 2 Q(p) = 25 -P . Q(p) = -3 + 3P . (a) Which of the two curves is the demand curve and which is the supply curve? How did you know? (b) Graph both curves (on the same graph)and find the equilibrium price and the equilibrium quantity transacted. (c) Solve algebraically for the equilibrium values in part (b). (d) Find the price elasticity of demand at equilibrium and interpret your result. .-(1) (2)

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics

Section20.2: Consumer Equilibrium And Demand

Problem 1ST

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