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Question: Two groups are the only buyers of good x. The demand functions for each group are given by:  X_1 ...

Show transcribed image text Two groups are the only buyers of good x. The demand functions for each group are given by: X_1 (p_x) = 20 – p_x X_2 (p_x) = 90 – p_x Find the own-price elasticity of demand epsilon_1 and epsilon_2 for each group. At what price p_x is epsilon_1 = – 1? What about epsilon_2 = – 1? On the same graph, draw both demand curves and the market demand curve. At what price p_x does the market demand curve have a kink? Provide a mathematical expression for the market demand curve. In fact, this will be two different expressions: one above the kink and one below the kink. At what price p_x does the market demand have a price elasticity of -1?

Two groups are the only buyers of good x. The demand functions for each group are given by: X_1 (p_x) = 20 – p_x X_2 (p_x) = 90 – p_x Find the own-price elasticity of demand epsilon_1 and epsilon_2 for each group. At what price p_x is epsilon_1 = – 1? What about epsilon_2 = – 1? On the same graph, draw both demand curves and the market demand curve. At what price p_x does the market demand curve have a kink? Provide a mathematical expression for the market demand curve. In fact, this will be two different expressions: one above the kink and one below the kink. At what price p_x does the market demand have a price elasticity of -1?