Consider the following market for good x (finely divisible).
Q = 2 P; and ; Q=16/√P;
* Identify the demand and the supply functions
* Find the equilibrium price and quantity
* What would happen (Surplus or shortage) if this market was imposed: A price of 5 dollars per unit?
* Calculate the elasticity of demand at the price P= 8. (Elastic or Inelastic? Why?)