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The price elasticity of demand for computers is -0.75 .The price elasticity of supply for computers is 4.25. The price of a new computer is $ 500. last year 50 million computers were bought by private citizens in America .The federal government is concerned that low income students do not have the sane access to computers as other students. To solve the problem ,the government has decided to purchase 1 million computers per year and distribute them to low-income households.   What will be the resulting equilibrium price of a computer?

The price elasticity of demand for computers is -0.75 .The price elasticity of supply for computers is 4.25. The price of a new computer is $ 500. last year 50 million computers were bought by private citizens in America .The federal government is concerned that low income students do not have the sane access to computers as other students. To solve the problem ,the government has decided to purchase 1 million computers per year and distribute them to low-income households.   What will be the resulting equilibrium price of a computer?

Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 13PAE
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The price elasticity of demand for computers is -0.75 .The price elasticity of supply for computers is 4.25. The price of a new computer is $ 500. last year 50 million computers were bought by private citizens in America .The federal government is concerned that low income students do not have the sane access to computers as other students. To solve the problem ,the government has decided to purchase 1 million computers per year and distribute them to low-income households.

 

What will be the resulting equilibrium price of a computer? 

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