A. Partnership
Not sole proprietorship (more than one person)
Not corporation
Answer:
Explanation:
A mixture of pentadecane and heptadecane can be separated by amides.
(A) The supply function generally is considered to have positive slope. Qa has positive slope. Qb has negative slope, so is probably the demand function.
supply function: Qa
demand function: Qb
(B) The equilibrium price is the price that makes supply equal to demand.
Qa = Qb
50 +p = 200 -4p
5p = 150
p = 30
The equilibrium price is 30.
(C) The price elasticity of supply is computed as
Es = (dQa/dp)·(P/Qa) = 1·p/(50+p)
Es = p/(50+p)
At p=30, the numerical value is Es = 30/80 = 3/8. Qualitatively, the supply is inelastic.
