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a) Equilibrium price of MP3 player in Japan. Equilibrium price: Qs = Qd Qs = 1300 + 17 P Qd = 1900 - 7P 1300 + 17 P = 1900 - 7 P 1317 = 1893 P P = 1.437 Q = 1300 + 17 (1.437) = 1300 + 24.429 =1324.42 E D / P = P / Q Qp/P = 1.437 / 1324.42 (-7) = -6.998 elasticity of price is inelastic Elasticity of ...

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The Case: Pakistan is among the major producers of sugar in the world. Let’s suppose that the demand and supply functions of sugar industry of Pakistan are: Qd = 5000 –2P Qs = 200 + 4P Over the last few years the country has experienced the worst sugar crisis. As a result, the price of sugar has rem...

Petrol and Compressed Natural Gas (CNG) are the essential components of every economy. Pakistan’s economy being already under pressure in past few years; has been again hit by a sharp increase in fuel prices. The current ruling government increased the price of CNG from Rs. 35/Kg to Rs.89/kg and pri...

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... does not open • Cheating or copying of assignment is strictly prohibited. The cheated or copied assignment will be marked as Zero. Assignment 1 ECO402 Assignment 1 ECO402 (MICROECONOMICS) Semester Fall 2009 Total Marks:15 Question: Suppose that two investments have been made by Aslam with the ...