The Price Elasticity of Demand for Melocotones Is Constant and Equal

question 1

Multiple Choice

The price elasticity of demand for melocotones is constant and equal to -2.The melocotone market is controlled by two Cournot duopolists who have different cost functions.One of the duopolists has a constant marginal cost of $975 per ton and produces 70% of the total number of melocotones sold.The equilibrium price of a ton of melocotones must be

• A)$1,500.
• B)$750.
• C)$975.
• D)$3,000.
• E)$2,250.

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Definitions:

Future Supply

The quantity of a good or service that producers are willing and able to sell at various prices at a specific future date.

Computer Technicians

Professionals who maintain and repair computer systems and networks, ensuring that they operate efficiently.

Demand Increase

A situation in which the quantity of a product or service that consumers are willing and able to purchase at a given price rises over time.

Wage Attraction

The potential of an employer or a sector to draw employees by offering competitive or attractive wages.