Suppose the demand and supply functions for potatoes are as follows: Qd = 33.5 –...

Suppose the demand and supply functions for potatoes are as follows:
Qd = 33.5 – p2 and Qs = 9.5 + 0.5p2 respectively.

Requirement:

Determine the equilibrium quantity and price.
Draw the demand and supply curves and label correctly.
Explain the situation when the market price is above the equilibrium price.

With the aid of diagram, explain the relationship between total, average and marginal products to illustrate the law of diminishing return.

3. If Mr A demanded for 20 units of commodity X when his income was #40,000 and 30 units when his income increased to #60,000. Calculate the value of elasticity and what kind of good is commodity X to Mr A?

In Economics
1 Answers Available
Asked by Lipsey1 on 9th February, 2023