Consider the following supply and demand curves for a certain product? QD = 25,000P QS = 50,000 - 10,000P a. Plot the demand and supply curves. b. What are the equilibrium price and equilibrium quantity for the industry? Determine the answer both algebraically and graphically. (Round to the nearest cent.)

A) Supply and Demand Curves <img src="//img.wizedu.com/questions/05765180-cfae-11ec-a0b2-bf5bdcc9c707.png" title="1631387848165640.png" /> B) Market Demand (Qs) = Market supply (Qd)25,000P = 50,000 - 10,000 P50,000 = 35,000 PP=$1.43 When,P = $1.43,QD = 50,000 – (10,000 X 1.43) = 35,700 As Shown in the graph,Equilibrium price =$1.43Equilibrium quantity = 35,700

Question

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Managerial economics - Chapter 3 - Problem 2

Consider the following supply and demand curves for a certain product?

QD = 25,000P

QS = 50,000 - 10,000P

a. Plot the demand and supply curves.

b. What are the equilibrium price and equilibrium quantity for the industry? Determine the answer both algebraically and graphically. (Round to the nearest cent.)

Solutions

Expert Solution

A) Supply and Demand Curves

B) Market Demand (Qs) = Market supply (Qd)

25,000P = 50,000 - 10,000 P

50,000 = 35,000 P

P=$1.43

When,

P = $1.43,

QD = 50,000 – (10,000 X 1.43) = 35,700

As Shown in the graph,

Equilibrium price =$1.43

Equilibrium quantity = 35,700

Amanda K answered 1 year ago

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