Q1. At price equivalent to 14, two units are demanded. The slope of demand curve is -3. Find out the equation of demand curve.
Q2. All along the demand curve, total revenue is always constant. Illustrate that ed = 1.
Q3. Assume that the initial price is 8, and quantity demanded is 6. As price increase to 10, the quantity demanded drops to 4. Determine ed.
Q4. Assume that the demand curve be given as q = Ap-αmρ, where A, α, β are constants. Determine the price elasticity and income elasticity.
Q5. A market consists of two consumers where they demand q1 and q2, in such a way that:
q = q1 + q2.
a) Determine the price elasticity of market demand.
b) What happens if there are ‘n’ consumers?