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    Elasticity of Demand curve

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    If the market demand curve is Q=100-p. What is the market price elasticity of demand? If the supply curve of individual firms is q=p and there are 50 identical firms in the market, draw the residual demand facing any one firm. What is the residual demand elasticity facing one firm at the competitive equilibrium?

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    Since Q=100-p (1), e = -Q(p)'p/Q = p/Q
    Supply of each firm is q = p, then Q=50q , substitute into (1): 50q = ...

    Solution Summary

    A clear and concise response to the problem of demand elasticity. There are no graphs with the solution and just textual explanation. The response might not be adequate for students looking for detailed explanations. However, it is ideal for students who just want to confirm their answers or for students who want a concise and clear explanation of the problem.