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Bhoom1871
Bhoom1871
09.10.2019 • 
Business

Suppose we are studying the market for iphones, quantity of iphones is denoted q (the price of iphones is denoted p). there are only 45 consumers in this market; 15 consumer’s have the following inverse demand function: p(q)=2 - q10, and the other 30 consumer’s have the following inverse demand function: p(q) = 45 - 3q2 . the market supply of iphones is given by the function qs(p) = 30p, where qs(p) denotes quantity supplied as a function of the market price. (hint: can we derive the market demand curve from individual inverse demand curves? probably (a) what is the market equilibrium quantity and price for iphones? (b) what is the price elasticity of demand at the equilibrium price and quantity?

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