Solutions Economics

The supply of and demand for daytime talk show guests and circus clowns is given in the following ta

Question: The supply of and demand for daytime talk show guests and circus clowns is given in the following table:

Salary	Quantity supplied of talk show guests	Quantity demanded of talk show guests	(Nothing goes in this column; I just wanted to separate the markets)	Quantity supplied of clowns	Quantity demanded of clowns
$100	10	60		20	100
$110	11	40		25	80
$120	12	30		35	65
$130	14	25		50	50
$140	17	22		70	38
$150	20	20		95	22

a. What is the equilibrium salary in the talk show guest market?

b. What is the equilibrium salary in the clown market?

c. Which has the higher elasticity of demand between $140 and $150, guests or clowns? Be sure to show the formula and all of your work for both calculations.

d. Given your calculations, which group will suffer a larger decline in its wage if the public tires of its antics and the demand curve shifts left? Why?

e. The cross-price elasticity of demand for these performers is calculated to be .9. What does this tell you about the two groups? About the state of modern American Civilization?

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverables: Word Document