Difference between equilibrium price-equilibrium quantity
Problem: What is the difference between Equilibrium price and Equilibrium quantity. What role does elasticity place?
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Problem: Suppose that both the equilibrium price and quantity of golf clubs rise. Which of the following explanations would best explain this outcome?
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Calculate the resulting equilibrium price quantity combination for each firm. Illustrate your answer with a suitable graph. Also calculate optimal profits of each firm.
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