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a) Demand function of Chokobite Chocolate is \( Q_d \) = 1000 - 20P and supply function of Chokobite chocolate \( Q_s \) = 100 + 40P, find…

a) Demand function of Chokobite Chocolate is \( Q_d \) = 1000 - 20P and supply function of Chokobite chocolate \( Q_s \) = 100 + 40P, find equilibrium price and quantity of Chokobite chocolate. Also compute price elasticity of demand at equilibrium price.

b) Fill the following table by using the demand and supply function of Chokobite chocolate and find equilibrium price and quantity of Chokobite chocolate in table.

Price Quantity Demanded (Qd) Quantity Supplied (Qs) Surplus/shortage
5
10
15
20
25

Solution

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