Microeconomics 2nd Edition by Douglas Bernheim

Exercise 5

Suppose that the demand function for jelly beans is Q d = AP B and the supply function is Q s = CP D , where A , B , C , and D are all positive numbers.
a. What is the elasticity of demand with respect to changes in A
b. What is the elasticity of supply with respect to the price
c. Solve for the equilibrium price as a function of A , B , C , and D.
d. What is the elasticity of the equilibrium price with respect to changes in A