ECON201PS1

# ECON201PS1 - WELLESLEY COLLEGE DEPARTMENT OF ECONOMICS...

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b. Using this elasticity value, fit the given data into a linear demand function. c. Using this elasticity value, fit the given data instead into a demand function of the constant elasticity form. 3. The demand and supply for automobiles is given by: Q D = 0.1P -1.2 I 3 Q S = 6400Pw -0.5 Where P is measured in \$/car, I is income, and w is the hourly wage of automobile workers. a. Give values for the following: i. Price elasticity of demand for automobiles ii. Income elasticity of demand for automobiles iii. Price elasticity of supply for automobiles iv. Wage elasticity of supply for automobiles b. If, initially, I = \$20,000 and w = \$25/hour, calculate equilibrium in the automobile market. c.
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ECON201PS1 - WELLESLEY COLLEGE DEPARTMENT OF ECONOMICS...

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