Friday

October 24, 2014

October 24, 2014

Posted by **Candice** on Wednesday, April 10, 2013 at 1:30am.

The demand for inflatable garden gnomes is given by P = 300 – 2Q, while the supply of is P= 100 + Q/2. How many garden gnomes are traded in equilibrium?

I found the answer to be Q = 80.

The related question was the one I had difficulty with:

Suppose that the market for gnomes is yet to reach equilibrium, and that the current price and quantity in the market for gnomes in the previous question is P = 150 and Q = 75. What is the absolute value of the elasticity of demand at this point on the demand curve? (Remember to rearrange the demand curve!)

The multiple choices given were 0.5, 0.25, 2, 4 or 1. However I seem to keep getting 0.875 using the price elasticity formula.

Thanks!

- Economics -
**x**, Thursday, April 11, 2013 at 6:42ami'm doing the same question and i found it to be 1, however i did not rearrange the demand curve. how are we supposed to reaggrange the curve? confused *

**Answer this Question**

**Related Questions**

math - there is a water reservoir beneath a circular garden to supply a foutain ...

Math - The dimensions of Mrs. Singleton's square garden are dilated using a ...

math - There is a water reservoir beneath a circular garden to supply a fountain...

math - there is a water resivoir benteth a circular garden 2 supply a fountain n...

math - Joannies garden is in the shape of a square and has an area of 100 sq ft...

Unknow - A man has a rectangular garden. One length of the garden lies along a ...

math - Joannies garden is in the shape of a square and has an area of 100 sq ft...

yargo - a garden is shaped like an x. there is a right angle at each corner of ...

math - diana wants to make a 15ft. by 20ft. section of her yard into a garden. ...

math - The Aesthetic Garden Problem. A landscape architect wants the length of ...