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  • Eco401 As.1

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    Saleha Umer
    5 views2 pages
    This document contains an economics assignment analyzing supply and demand curves. It finds the equilibrium price and quantity where the supply and demand curves intersect. It then calculates the price elasticity of demand, finding it to be 0.708. Finally, it confirms the equilibrium by showing that at a price of $250, both the quantity demanded and supplied are 325 units.

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    eco401 As.1

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    This document contains an economics assignment analyzing supply and demand curves. It finds the equilibrium price and quantity where the supply and demand curves intersect. It then calculates the price elasticity of demand, finding it to be 0.708. Finally, it confirms the equilibrium by showing that at a price of $250, both the quantity demanded and supplied are 325 units.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    5 views2 pages

    Eco401 As.1

    Uploaded by

    Saleha Umer
    This document contains an economics assignment analyzing supply and demand curves. It finds the equilibrium price and quantity where the supply and demand curves intersect. It then calculates the price elasticity of demand, finding it to be 0.708. Finally, it confirms the equilibrium by showing that at a price of $250, both the quantity demanded and supplied are 325 units.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 2

    Assignment no 1

    Eco401
    Id:bc220202116
    Name: Saleha Umer

    1.
    = Qs=250+0.30
    = Qd=340-0.10
    = 340-0.10P=250+0.30P
    = 340-250=0.10P+0.30P
    = 90=0.4P
    = P=90/0.4
    = P=225

    = Now putting the value of price in demand:


    = P=225
    = Qd=340-0.10(225)
    = Qd=340-22.5
    = Qd=317.5

    = Now putting the value of price in supply:


    = P=225
    = Qs=250+0.30(225)
    = Qs=250+67.5
    = Qs=317.5

    2.
    = Price elasticity of demand
    Formula:
    = Percentage change in quantity demand/percentage change in price
    =-∆Q/∆P P/Q
    = Price elasticity of demand =-d( 340 – 0.1 0P)/dP *P/Q
    =Price elasticity of demand=-0.10(225/317.5)
    =Price elasticity of demand=0.708

    3.
    = Qd=340-0.10P
    = P=250
    = Qd=340-0.10(250)
    = Qd=325

    = Qs=250+0.30P
    = Qs=250+0.30(250)
    = Qs=325

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