Econ 2: Spring 2014: UC Berkeley: Sample Final Exam I: C. Elasticity

Still in Avicenna—same setup as B—but this time we have different supply and demand curves

• Demand: P = 148.413 x Q^(-0.5)

• Supply: P = 1/54.598 x Q

  1. What is the elasticity of demand at Q = 1?
  2. What is the elasticity of supply at Q = 1?
  3. What is the market equilibrium price
  4. What is the market equilibrium quantity?
  5. What is the producer surplus?
  6. What is the consumer surplus?
  7. At what quantity is total revenue maximized?