HW chap 3-2

# Thereforeattheequilibriumprice pqd 60136031313

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Unformatted text preview: d function considered in this question: Also, the equilibrium price is P = 60/(1 + 3), and the corresponding equilibrium quantity is Qd = 60(3)/(1 + 3). Therefore, at the equilibrium price P / Qd = 60/(1 + 3) / 60(3)/(1 + 3) = 1/3 Substituting the values in the price elasticity formula, note that for this demand and supply, the elasticity equals ­ 1 (60/(1 + 3) / 60(3)/(1 + 3)) = −1/3 = ­0.333333333. http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie w 2/8 1/22/2014 2. Assignme nt Pr int Vie w awar d: 16.66 out of 16.66 points The demand for corn (measured in billions of bushels) is given by The supply of corn is given by a. If potatoes cost \$0.50 per pound, butter costs \$8.00 per pound, diesel fuel costs \$2.50 per gallon, soybeans cost \$8.00 per bushel, and average income, M, is \$45,000 per year, what is the equilibrium price of corn as determined by the demand and supply functions? Instructions: Round your answer to 1 decimal place. \$3. 50 . b. How much corn is bought and so...
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## This note was uploaded on 01/22/2014 for the course ECO 3352 taught by Professor Ax during the Fall '13 term at Troy.

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