Need Help:
Qd = 17000 –6P
Qs = 900 + 8P
Find out the price elasticity of demand and price elasticity of supply of Sports
goods when the industry is in equilibrium and interpret the results.

Question

Need Help:
Qd = 17000 –6P
Qs = 900 + 8P
 Find out the price elasticity of demand and price elasticity of supply of Sports
goods when the industry is in equilibrium and interpret the results.

anonymous · Answer

in order to be able to calculate the elasticity we need to know what is the price and quantity.

lets calculate ;;
                       QD=QS
            17000-6P=900+8P
            17000-900=8P+6P
            16100=14P
             16100/14=14P/14
             1150=P
             10100=Q

E=Q2-Q1/Q2/P2-P1/P2=10100-10100/10100  /1150-1150/1150 
                                    =0
THE PRICE ELASTICITY OF DEMAND AND SUPPLY IN EQ IS PERFECTLY IENELASTICS ANY CHANGE IN EQUELIBRIUM TO PRICE OR QUANTITY WILL NOT HAVE ANY EFFECT TO PRICE 
VISE VERSA

anonymous · Answer

THanks