Consider a competitive market for which the quantities demanded and supplied (per year) at various prices are given as follows:
price (dollars) demand (millions) supply (millions)

(i)- 60 22 14
(ii)- 80 20 16
(iii)-100 18 18
(iv)-120 16 20
a. calculate the price elasticity of demand when the price is $80 and when the price is $100.
b. calculate the price elasticity of supply when the price is $80 and when the
price is $100.
c. what are the equilibrium price and quantity ?
d. suppose the government sets a price ceiling of $80. will there be a shortage,
and if so, how large will it be ?

Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position