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3. UYGULAMA DERS&Atilde; SORULARI_18-19.10.2010

# 3. UYGULAMA DERS&Atilde; SORULARI_18-19.10.2010 -...

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SD&ZY_2010-2011/3 ISL233-M İ KRO İ KT İ SAT-UYGULAMA DERS İ -3 18-19.10.2010 12. Suppose that the long-run world demand and supply elasticities of crude oil are -0.906 and 0.515, respectively. The current long-run equilibrium price is \$30 per barrel and the equilibrium quantity is 16.88 billion barrels per year. Derive the linear long-run demand and supply equations. Next, suppose the long- run supply curve you derived above consists of competitive supply and OPEC supply. If the long-run competitive supply equation is: 7.78 0.29 , = + C S P what must be OPEC's level of production in this long- run equilibrium? 13. Harding Enterprises has developed a new product called the Gillooly Shillelagh. The market demand for this product is given as follows: Q = 240 - 4P a. At what price is the price elasticity of demand equal to zero? b. At what price is demand infinitely elastic? c. At what price is the price elasticity of demand equal to one? d. If the shillelagh is priced at \$40, what is the point price elasticity of demand?

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3. UYGULAMA DERS&Atilde; SORULARI_18-19.10.2010 -...

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