Please show work and steps Demand for pretzels is: Qd = 10,250 - 5000 P Supply i
ID: 1176876 • Letter: P
Question
Please show work and steps
Demand for pretzels is: Qd = 10,250 - 5000 P Supply is: Qs = -1000 + 4000 P Find the equilibrium price and quantity, and graph the functions. What is the lowest price that producers would ever sell pretzels for? What is the highest price consumers would ever be willing to pay? Also solve for total revenue, and shade it in on your graph. Now find the price elasticity of demand at the equilibrium point. If the price of pretzels increased by 1%, w hat is the new quantity demanded? What is the new total revenue? (Plug the new higher price into the Qd function to solve for these $ values, then verify the percent change in Qd and TR) Find the elasticity of supply at our original equilibrium point in part a. Is supply elastic, inelastic or unitary elastic at this point?Explanation / Answer
q= 1.25 p =4000