The demand and supply curves for a good are given by Q^D = 50 - 2P and Q^S = P - 1.
a. Calculate the price elasticity of demand at the equilibrium price.
b. Calculate the price elasticity of supply at the equilibrium price.
c. What would happen to consumer expenditures on the good if firms must pay higher prices for their inputs in production?

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The Answer of The demand and supply curves for a good are given by Q^D = 50 - 2P and Q^S = P - 1. a. Calculate the price elasticity of demand at the equilibrium price. b. Calculate the price elasticity of supply at the equilibrium price. c. What would happen to consumer expenditures on the good if firms must pay higher prices for their inputs in production?

The Demand and Supply Curves for a Good Are Given