Question

4. A market consists of three consumers M, N and R whose demand equations are :
M; P=35-0.050QM
N; P=50-0.25QN
R; P=40-2.00QR
Market supply equation is given as : 40+3.5P
a. Find equilibrium price and quantity 4
b. Calculate price elasticity of demand at equilibrium position and interpret the result. 2
c. If the price has been increased by Rs. 3, at market equilibrium, what will be the market
position in the case of demand and supply?

Answer 1

Answer:

A market consists of three consumers M, N and R whose demand equations are : M; P=35