HW4 Additional Problem

HW4 Additional Problem - c) Suppose that the farmers decide...

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Homework 4 Additional Problem ECON 010, Fall 2011 Question 1 Consider a market for milk. The demand and supply for milk are as follows: Demand : P = 100 - 2 Q D Supply : P = 20 a) Find the equilibrium quantity, price and revenue generated in this market. b) Calculate the price elasticity of demand at the equilibrium.
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Unformatted text preview: c) Suppose that the farmers decide to withhold some of their produced milk in an effort to raise the price in the market. Find the amount of quantity they will need to withhold such that their total revenues are maximized. 1...
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This note was uploaded on 04/04/2012 for the course ECON 010 taught by Professor Stein during the Fall '07 term at UPenn.

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