Question
In: Economics
Consider the following hypothetical market for CDs. Suppose that the demand curve for CDs is given...
Consider the following hypothetical market for CDs. Suppose that the demand curve for CDs is given by QD=200-10P and suppose that the supply curve for CDs is give by QS=20P-100. a) Sketch the supply curve and the demand curve. b) What are the equilibrium price and quantity of CDs? c) Calculate the amount consumers paid (in total) for CDs
Solutions
Expert Solution
a)
b) Equilibrium occurs when demand = supply
200 - 10P = 20P - 100
P = 10
At this P, Q = 100
c) Total price paid by consumer at equilibrium 10 * 100 = 1,000
Rahul Sunny answered 2 years agoRelated Solutions
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