MHB Price, Supply, and Demand Questions II

[Fuzzyllama]

I need some help finishing a few problems on my assignment. Any help is appreciated

3. The followin equations represent demand curves for a commodity; q. A. q=100-p B. q=10+p C. q=50. What is choke price, slope and price elasticities of demand in the neighborhood of q=100 and q=50.

4. Assume market demand is created by P=120-6Q and P=60-30Q. Supply is created by 10 firms with cost curves of TC=q^2. What is market demand and supply? What is equilibrium price and quantity? How big is CS and PS?

Thanks in advance for any help!

 

[Sudharaka]

3. The following equations represent demand curves for a commodity; q. A. q=100-p B. q=10+p C. q=50. What is choke price, slope and price elasticities of demand in the neighborhood of q=100 and q=50.

Hi Fuzzyllama, :)

I don't know much about economics and the mathematics associated with it, but I think that the second demand curve that you have given is incorrect. Except under special circumstances, demand curves should have a negative slope according to the law of demand. But the curve, \(q=10+p\) seem to have a positive slope. Is there a typo?

Kind Regards,
Sudharaka.