Elasticity of Demand Curve

If the market demand curve is Q=100-p. What is the market price elasticity of demand? If the supply curve of individual firms is q=p and there are 50 identical firms in the market, draw the residual demand facing any one firm. What is the residual demand elasticity facing one firm at the competitive equilibrium?

© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/economics/basic-economic-concepts-and-principles/elasticity-of-demand-curve-29v

Solution Preview

...0 - p
Then we can find q* = 100/51 and p* = 100/51
So assume the other 49 firms will produce 49q* = 4900/51 ...