2. Two trading markets have the following information: Surplus market: Qd = 60 - 1.2P; Qs = 0.8P Deficit market: Qd = 160 – 1.5P; Qs = 20 + 0.5P. If traded volume is 30mt (a) determine the transaction...

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2.<br>Two trading markets have the following information:<br>Surplus market: Qd = 60 - 1.2P; Qs = 0.8P<br>Deficit market:<br>Qd = 160 – 1.5P; Qs = 20 + 0.5P. If<br>traded volume is 30mt<br>(a)<br>determine the transaction costs<br>(b)<br>each market<br>compute the elasticities of demand and supply in<br>what would be the effect of increasing elasticity of<br>(c)<br>supply in the surplus through technology<br>improvement?<br>what would be the effect of increasing elasticity of<br>(d)<br>demand in the deficit market?<br>

Extracted text: 2. Two trading markets have the following information: Surplus market: Qd = 60 - 1.2P; Qs = 0.8P Deficit market: Qd = 160 – 1.5P; Qs = 20 + 0.5P. If traded volume is 30mt (a) determine the transaction costs (b) each market compute the elasticities of demand and supply in what would be the effect of increasing elasticity of (c) supply in the surplus through technology improvement? what would be the effect of increasing elasticity of (d) demand in the deficit market?

Jun 07, 2022

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2. Two trading markets have the following information: Surplus market: Qd = 60 - 1.2P; Qs = 0.8P Deficit market: Qd = 160 – 1.5P; Qs = 20 + 0.5P. If traded volume is 30mt (a) determine the transaction...

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