Intermediate microeconomics -- assume the market for, Ask an Expert

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Intermediate Microeconomics -- Assume the market for generic aspirin is perfectly competitive. At equilibrium, the price elasticity of demand for generic aspirin is characterized as ED = − 1/5. The linear market demand and linear market supply can be characterized as follows:

QD =b−35P

QS = 510P − 938

Where b is a numerical value, P represents the price of one box of generic aspirin, and Q represents the number of boxes demanded or supplied per day. (a) What is the equilibrium value of price and quantity? (b) What is the value of b?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91708052

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