QUESTION 27Refer to the market supply and demand diagram below to answer the next question.PriceS.(S)321O 1020 30 40 50 60 70 so 90 100 110 120QuantityAt equilibrium the price elasticity of demand isand the price elasticity of supply isO 0 1O 1;0O 1/400; 0O 0.5; 1

FORMULAS: Price elasticity of demand = -(Q2 - Q1 / P2 - P1) * (P1/Q1) Price elasticity of supply =…

Answered: At equilibrium the price elasticity of…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 1QR

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At equilibrium the price elasticity of demand is and the price elasticity of supply is