The price elasticity of demand for computers is -0.75 .The price elasticity of supply for computers is 4.25. The price of a new computer is $ 500. last year 50 million computers were bought by private citizens in America .The federal government is concerned that low income students do not have the sane access to computers as other students. To solve the problem ,the government has decided to purchase 1 million computers per year and distribute them to low-income households. What will be the resulting equilibrium price of a computer?
The price elasticity of demand for computers is -0.75 .The price elasticity of supply for computers is 4.25. The price of a new computer is $ 500. last year 50 million computers were bought by private citizens in America .The federal government is concerned that low income students do not have the sane access to computers as other students. To solve the problem ,the government has decided to purchase 1 million computers per year and distribute them to low-income households. What will be the resulting equilibrium price of a computer?
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter6: Simple Pricing
Section: Chapter Questions
Problem 1MC
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