Q1. For each of the determinants of demand in Equation identify an example illustrating the effect on the demand for hybrid gasoline-electric vehicles such as the Toyota Prius. After that to do the same for each of the determinants of supply in Equation. In each instance, would equilibrium market price raise or decline? Reflect on substitutes such as plug-in hybrids, the Nissan Leaf and Chevy Volt, as well as complements such as gasoline and lithium ion laptop computer batteries.
Q2. In a particular monopoly, the demand equation is given by: y(p) = 5p
1. What is the price elasticity of demand?
2. What is the total revenue of the monopolist at p = 1 and at p = 30?