HW1 - ECO 3301 Fall 2010 Homework 1 The homework is due at...

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ECO 3301 Fall 2010 Homework 1 The homework is due at the beginning of class , Friday, Sep 3 1. The demand for books is:Qd = 120 - P The supply of books is:Qs = 5P (a) What is the equilibrium price of books? (b) What is the equilibrium quantity of books sold? (c) If P = $15, is there a surplus? Is there a shortage? What is the magnitude? 2. What are the elasticities of the demand curve at the points A through E? 3. The inverse demand curve for product X is given by: P X = 25 - 0.005Q + 0.15P Y , where P X represents price in dollars per unit, Q represents rate of sales in pounds per week, and P Y represents selling price of another product Y in dollars per unit. The inverse supply curve of product X is given by: P X = 5 + 0.004Q. (a) Determine whether X and Y are substitutes or complements. (b) Determine the equilibrium price and sales of X. Let PY = $10. 4. The daily demand for hotel rooms on Manhattan Island in New York is given by the equation Q D
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HW1 - ECO 3301 Fall 2010 Homework 1 The homework is due at...

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