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Resubmitted - Piacos - Assignment #4
Resubmitted - Piacos - Assignment #4
Resubmitted - Piacos - Assignment #4
ASSIGNMENT #4
ECON 1 / 1676
PROBLEM: Consider the market for Product ABC. When the price is at 10 php. Quantity SUPPLIED is 2 units. An 8 pesos increase
in the price would change quantity supplied by 4 units.
PRICE (P) QUANTITY DEMANDED (Qd)
10 PESOS 2 UNITS
ABC
18 PESOS 6 UNITS
4. THE PRICE OF THE PRODUCT ABC WHEN NO ONE WOULD WANT TO SELL THE PRODUCT IS ZERO
5.
P Qs
23.50 12.25 units
6.
P Qs
23.50 12.25 units
7. IMPACT OF THE 3 PHP INCREASE IN PRICE
A 3 PESO INCREASE IN THE PRICE OF THE PRODUCT WOULD INCREASE QUANTITY SUPPLIED BY 9 PESOS
3 Qs
8. P 6 A 6 PESO CHANGE IN PRICE FOR A 5 UNIT INCREASE
0 .5 0 .5
9.
100%
(Q2 Q1 )
Q1
ES
100%
( P2 P1 )
P1
9
ES 1.53( ELASTIC )
5.9