Business, 10.04.2020 18:15 carmen261

Suppose that budding economist Buck measures the inverse demand curve for toffee as P=$100-Qd, and the inverse supply curve as P=Qs. Buck's economist friend, Sally, likes to measure everything in cents. She measures the inverse demand function as P=10,000-100Qd, and the inverse supply curve as P=100Qs.

A) Find the slope of the inverse demand curve, and complete the price elasticity of demand at the market equilibrium using Buck's measurements.

B) Find the slope of the inverse demand curve, and complete the price elasticity of demand at the market equilibrium using Sally's measurements.

C) Does the slope depend on whose measurements are used?

D) Does the elasticity depend on whose measurements are used?

E) Explain why your answers to parts c and d are the same (or different).

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 19:10, ayoismeisalex

Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position

Answers: 3

continue

Business, 22.06.2019 20:50, aberiele1998

You are bearish on telecom and decide to sell short 100 shares at the current market price of $50 per share. a. how much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position? b. how high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (input the amount as a positive value. round your answer to 2 decimal places.)

Answers: 3

continue

Business, 22.06.2019 21:30, sergiom6185

Russell's study compared gpa of those students who volunteered for academic study skills training and those who did not elect to take the training. he found that those who had the training also had higher gpa. with which validity threat should russell be most concerned?

Answers: 2

continue

Business, 22.06.2019 21:30, angoliabirtio

The adjusted trial balance for china tea company at december 31, 2018, is presented below:

Answers: 1

continue

You know the right answer?

Suppose that budding economist Buck measures the inverse demand curve for toffee as P=$100-Qd, and t...