document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1086429>Question 1086429</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If the demand and supply functions of a good are given as<BR>\n" );
document.write( "Qd = 250-3P  <BR>\n" );
document.write( " Qs = 2P – 50<BR>\n" );
document.write( "a Determine the price elasticity of demand and supply at equilibrium.<BR>\n" );
document.write( "b From the above information, would there be shortage or surplus if government decides the market price to be 75 units? How much will it be? <BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #700624 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=700624\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Set them equal to each other<BR>\n" );
document.write( "250-3P=2P-50<BR>\n" );
document.write( "300=5P<BR>\n" );
document.write( "P=60 at equilibrium<BR>\n" );
document.write( "If the market price were 75 units<BR>\n" );
document.write( "Qd=250-225=25<BR>\n" );
document.write( "Qs=150-50=100<BR>\n" );
document.write( "Lot of supply, not much demand.  Surplus of 75 units. </SPAN>\n" );
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