Consumer indifference curve Factors of production Normal, accounting and economic profit, and the relationship between them. Suppose the price elasticity of demand for a particular good is 15. If there is 30% in the volume of demand, the percentage decrease in price in this case will be __ What is the equilibrium price if the demand function is: Q_(D)=10-2P and the supply function is Q_(S)=-5+3P

Let's correct the previous explanation and provide the accurate answers:<br /><br />1. **Percentage decrease in price given the price elasticity of demand:**<br /><br /> The price elasticity of demand (PED) is defined as the percentage change in quantity demanded divided by the percentage change in price. Given that the PED is 15 and there is a 30% increase in the volume of demand, we can find the percentage change in price using the formula:<br /><br /> \[<br /> \text{PED} = \frac{\% \text{ change in quantity demanded}}{\% \text{ change in price}}<br /> \]<br /><br /> Rearranging to solve for the percentage change in price:<br /><br /> \[<br /> \% \text{ change in price} = \frac{\% \text{ change in quantity demanded}}{\text{PED}}<br /> \]<br /><br /> Substituting the given values:<br /><br /> \[<br /> \% \text{ change in price} = \frac{30\%}{15} = 2\%<br /> \]<br /><br /> Therefore, the percentage decrease in price is 2%.<br /><br />2. **Equilibrium price given the demand and supply functions:**<br /><br /> To find the equilibrium price, we set the quantity demanded equal to the quantity supplied:<br /><br /> \[<br /> Q_D = Q_S<br /> \]<br /><br /> Given the demand function \( Q_D = 10 - 2P \) and the supply function \( Q_S = -5 + 3P \), we set them equal to each other:<br /><br /> \[<br /> 10 - 2P = -5 + 3P<br /> \]<br /><br /> Solving for \( P \):<br /><br /> \[<br /> 10 + 5 = 3P + 2P<br /> \]<br /><br /> \[<br /> 15 = 5P<br /> \]<br /><br /> \[<br /> P = 3<br /> \]<br /><br /> Therefore, the equilibrium price is $3.