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 e_{d}.
Q4. Assume that the demand curve be given as q = Ap^{-α}m^{ρ}, where A, α, β are constants. Determine the price elasticity and income elasticity.
Q5. A market consists of two consumers where they demand q_{1} and q_{2}, in such a way that:
q = q_{1} + q_{2}.
a) Determine the price elasticity of market demand.
b) What happens if there are ‘n’ consumers?