Model Airplane Supplies
Is this economic model elastic or inelastic?
The daily demand for one-way airline tickets from North Bay to Toronto can be represented by the function
Qd = 15 – P/20
and the supply of airline tickets can be represented by the function
Qs = P/10 – 9
where Qd is the quantity demanded, Qs is the quantity supplied and P is the price of an airplane ticket.
Find both the inverse demand and inverse supply functions.
Determine the equilibrium price and quantity.
What is the price elasticity of demand when the price of an airline ticket drops from $180 to $160?
Given your results in part d, would say that the demand for one-way air travel on this route is elastic or inelastic?
inverse demand function: P = 300- 20Qd
inverse supply function: P = 90+ 10 Qs.
equilibrium price and quantity.can be derived by setting Qs =Qd.
So, 15 – P/20 = P/10 – 9, or, 3P = 480, or, P= 160. Putting this equilibrium value od Price =P=160 in the deamnd or the supply function, we get the equilibrium quantity as Q= Qs= 160/10 – 9 = 16 -9 = 7 or Q =Qd= 15 – 160/20 = 15 – 8 = 7. –
To get the price elasticity, we must use the formula= (dQQ)/ (dP/P)
= (dQd/dP) *(P/Qd) = (-1/20) *(180/6) = – 180/120 = – 1.5
Alternative way of doing this is as follows: At P = 160, Qd= 7, and at P= 180, Qd= 15 – 180/20 = 15- 9 =6.
So, percentage change in demand is 100* (7-6)/6 = 100/6 and
percentage change in price is 100* (160-180)/ 180 = -100/9
Ths price elasticity of demand is = (100/6)/ (-100/9) = – 9/ 6 = -1.5
|
|
Black & Decker LP1000 Alligator Lopper 4.5 amp Electric Chain Saw $64.88 The Alligator Lopper’s wide 4-inch jaw capacity easily chews through small trunks and logs. Because the Alligator Lopper cuts side-to-side instead of up and down, the chain won’t bury itself in the ground when the cut is completed — saving wear and tear on the cutting surface. The Alligator Lopper’s controlled, smooth cutting action makes clean-up from storms or simple pruning easy,… |
|
|
Rubbermaid Blue Ice® Block $2.02 Rubbermaid, Blue Block Module Pack Ice Substitute, Blue Ice Brand, 3.5″ x 1.5″ x 6.8″, Ice Without The Mess, Hard, Block Modules Snap Together Back To Back Or Side To Side…. |
|
|
Belkin 2 Outlet Dc/Ac Inverter $24.00 You know the ritual. You’re in the middle of a long road trip with the family the children are restless and a fight ensues. If there were only some way to power a TV to break up the monotony well now there is with AC Anywhere. Perfect for charging batteries for your cellular phone portable puter electric shaver TV or virtually any device while traveling. The inverter features fuse protection along… |
|
|
Drive Medical Pedal Exerciser with Attractive Silver Vein Finish, Silver Vein (Knock down) $16.50 Exercise Peddler With Attractive Silver Vein FinishAttractive silver vein finishCompact for storage and transportComes completely assembledColor Silver Vein… |
|
|
Mickey Mouse Jumbo Airwalker Party Balloon $8.71 This jumbo sized mylar is amazing. Attach the included wieghts to the bottom of his feet and he hovers close to the floor…. |
|
|
Black & Decker Power Mop $35.99 Black & Decker, Cordless, Power Scrubbing Mop, Battery Operated Scrubbing Mop Combines Wet/Dry Floor Cleaning With On Board Scrubbing & Cleaner Dispersion, For Replacement Pad Use #PM-DP…. |
