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Equilibrium price and equilibrium quantity using linear functions

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Describe the interaction between equilibrium price and the equilibrium quantity.

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Solution Summary

This solution describes the interaction between equilibrium price and equilibrium quantity, which are simple economic concepts. This is included in a Word document with examples of linear function and both examples and definitions of inelastic, unit elasticity, and elasticity. The answer is given in 314 words and includes equations of slope, inverse slope, p/q and elasticity of demand.

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Student,

Simple economics is based on supply and demand functions. That is, the price your supplier charges you depends on the quantity you buy from them. The price you charge your customers depends on the level of demand they have for your product.

See the rest of the answer in the attached Word document.

Student,
Simple economics is based on supply and demand functions. That is, the price your supplier charges you depends on the quantity you buy from them. The price you charge your customers ...

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