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?© BrainMass Inc. brainmass.com November 24, 2022, 11:29 am ad1c9bdddf
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 = ...
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