## Determine Linear Demand function and Linear supply function.?

2)Suppose the market for natural gas in Estonia is a competitive market

Initially the market price of natural gas is per unit, and 20,000 units are sold in Estonia

From past records, for every percent increase in the price of natural gas, its supple will increase by 2 percent. An economist estimates the demand elasticity for natural gas in Estonia is -0.4

-Find the linear demand function and linear supply function of natural gas at the initial condition. Show your steps

-Recently, bad weather has disrupted the transmission of natural gas such that supply reduces by 25%. Calculate the new market price of natural gas in Estonia

-Suggest some practical ways in estimating the price elasticity of demand in general

July 19th, 2010 at 10:29 am

This is supposed to be in the math section.