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Economics help: Kinked demand curve

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    Question Economics help: Kinked demand curve

    Hello everybody

    I am trying to solve this examination assignment. I feel like I do everything right, but the result just does not seem right.

    Within a 6 month period the Demand can be described as follows:

    Upper line segment (Q ; P) = (1.000 ; 305) and (2.000 ; 230)
    Lower line segment (Q ; P) = (2.212,5 ; 147,5) Ep = - 1/3

    I need to find the MR- and P-function

    I calculate the two P functions to be the following:
    Upper line segment: P = -0,075Q+380
    Lower line segment: P = -0,2Q+590

    And the MR functions
    Upper line segment: MR = -0,15Q+380
    Lower line segment: MR = -0,4Q+590

    The intersept between Pupper and Plower is (254;1680)
    MRupper intersept P=0 at (0;2533)
    MRlower intersept P=0 at (0;1475)

    And this just does not seem right to me.

    To my knowledge, the kinked demand curve can't be solved unless both MR intersept with P=0 Q<1680

    Can anyone help me?

    /Dyregod

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    Forum Moderator zbor's Avatar
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    Re: Economics help: Kinked demand curve

    Please use propper sub-forum. I've move it now to General.

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    Re: Economics help: Kinked demand curve

    Quote Originally Posted by zbor View Post
    Please use propper sub-forum. I've move it now to General.
    Alright sorry :-)

    It just thought it was not necessarily related to excel.

    /Dyregod

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