Recycling Fee and Elastic Demand. Assume that the weekly supply of 16-ounce bottles of soda at convenience stores in the Twin Cities of Minneapolis and St. Paul is a function of price such that:
where Q is the number of sodas sold in convenience stores (in thousands) and P is the soda price. Assume demand is perfectly elastic at a price of $1.

Question

Recycling Fee and Elastic Demand. Assume that the weekly supply of 16-ounce bottles of soda at convenience stores in the Twin Cities of Minneapolis and St. Paul is a function of price such that:
  where Q is the number of sodas sold in convenience stores (in thousands) and P is the soda price. Assume demand is perfectly elastic at a price of $1.

Quizplus · Accepted Answer

The Answer of Recycling Fee and Elastic Demand. Assume that the weekly supply of 16-ounce bottles of soda at convenience stores in the Twin Cities of Minneapolis and St. Paul is a function of price such that:
  where Q is the number of sodas sold in convenience stores (in thousands) and P is the soda price. Assume demand is perfectly elastic at a price of $1.