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ECO401 Assignment no#1 Spring 2016

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Not possible me to answer your query during office hours as today is last day you can reach on my what's app for quick response

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sb  ne solution btya
but kindly please  koi  compleet  asimnt  send kr dain  word pe bni hui ,,,

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Graph show nhn ho rh ahay

SYED AWAIS SAHIB GRAPH AP NA ASSIGNMENT MA SHOW TO KIA HA

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Awais ap ka elsticiy of supply wrong calculate how ha  calculation dubara check kero

awais ap ne part b me price elasticity of supply ka answer galt nikala he.. us ko thek kr li kuch time baqi he

Any complete solution regarding assignment?

Assignment ECO 401

Find the equilibrium price and equilibrium quantity for “United auto industries (PVT) Ltd.” Also show the equilibrium condition graphically.
Qd=650000-11P
Qs=700+5P
Qd=Qs
P
650000-11P = 700+5P
650000-700 = 5P+11P
P = 649300/16
P = 40581.25
Q
Qs = 700+5P
QE= 700+5(40581.25)
QE = 700+202906.3
QE = 203606 Units

P
40581.25

203606 Q

(b) Find out the price elasticity of demand and price elasticity of supply of this company when it is in equilibrium and interpret the results.

Price Elasticity of Demand:
Є = dQ/dP x P/Q
P=40281.25 & Q = 203606.25

dQ/dP
Qd = 650000-11P
dQ/dP = -11

Є = -11 x 40281.25/203606.25
Є = -2.176

Equilibrium point is elastic.

Price Elasticity of Supply:
Є = dQ/dP x P/Q

P=40281.25 & Q = 203606.25

dQ/dP
Qs = 700+5P
dQ/dP = 5

Є = 5 x 40281.25/203606.25
Є = 0.989

Equilibrium point is inelastic.

( c ) What will be the effect on the equilibrium situation of the company if taxes on local auto parts are reduced? Illustrate graphically.

Demand Curve
Supply Curve
P

Q

graph shw nhn ho rh ahay

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